Nigeria’s security challenges a major concern for investors - CNBC Africa

Nigeria’s security challenges a major concern for investors

Western Africa

by Dara Rhodes 0

Over 50 feared dead in the attack this morning. Photo: Getty images

The blast happened in the earlier hours of the morning and many people have been confirmed dead at the Nyanya El Rufai Park. While the cause of the blast or the people behind this have not been revealed, many of the victims have been rushed to Wuse General Hospital.

“I think this will slow things down temporarily, I don’t think this will reverse the inflows that we saw coming in last week or even the flows that are in country as we speak,” Bayo Adeyemo, Treasurer at Citi Nigeria told CNBC Africa.

In August 2011, there was a car bomb explosion at the United Nation’s building in the country’s capital that killed at least 21 and 60 wounded. Analysis by BusinessDay in the last trading week of August that year showed that the stock market had 183 billion naira in that week. 

“Clearly, investors would want to analyse the situation and watch closely for some time. Obviously security challenges in Abuja or Lagos, would be a major concern for investors,” he said.

[video]

Since the Boko Haram uprising in 2009, terrorism has been rampant in the northern part of Nigeria and thousands of lives have been lost. Nonetheless, this hasn’t had significant impact on investments into the country and Adeyemo believes that if the attacks were limited to the north, then investments would continue.

“Most of the investors factored in the security challenges especially in the north east, so that is factored into whatever investments that has been taken. Abuja is slightly different, that’s why they would watch closely to be sure that this is an isolated case and that the federal Government is UN top of it,” he explained.

The World Economic Forum on Africa scheduled from 7 to 9 May in Abuja is set to bring world leaders to the country and showcase Nigeria’s numerous investments opportunities. However, this attack has highlighted again, the significant security challenges in the country.

“We don’t know who has done this, clearly it’s a deliberate attempt to create panic and concern to investors. I think the emphasis is on the federal government to show strength and character in this period.”

“It’s important that the event goes on and I’m very optimistic that we will get through this,” he ended.

Comments