Nigeria’s revenue set to rise in 2018

Nigeria’s economy is showing signs of improvement in 2018, with investors expressing optimism about the country's future despite the upcoming general elections. Bismarck Rewane, Managing Director of Financial Derivatives, recently shared insights on the revenue outlook for Nigeria at the West Africa Investors summit hosted by Stanbic IBTC. The country's successful issuance of a $2.5 billion Eurobond and recent GDP figures indicating a 0.8% annual growth, compared to a previous year's contraction of 1.53%, have bolstered investor confidence. Despite the modest growth, the positive trends in stable oil production, oil prices, and a mostly stable political environment suggest a brighter revenue profile for Nigeria in 2018. Rewane highlighted that the country is becoming an attractive destination for investments, paving the way for further economic progress in 2019. The investor conference organized by IBTC in the lead-up to the elections signifies a growing faith in the Nigerian economy and a commitment to its long-term potential. While acknowledging the need for progress in governance, Rewane emphasized the government's responsiveness to public demands for improved leadership. He noted that visible steps taken by the government could enhance investor confidence and secure a favorable economic outlook. Looking at the capital market, sectors such as fast-moving consumer goods, light manufacturing, and transportation are gaining traction, offering lucrative investment opportunities. The stock market presents favorable prospects, with undervalued financial instruments attracting interest from investors. The insurance sector, in particular, stands out as a sector ripe for investment. Infrastructure development emerged as a key focus at the conference, with infrastructure financing posing a challenge for investors. Private equity funds, pension funds, institutional investors, and insurance companies are identified as potential sources of funding for infrastructure projects. Public-private partnerships are also seen as crucial for bridging the massive infrastructure gap in Nigeria. Despite regulatory concerns, Rewane stressed the importance of striking a balance between oversight and facilitation to encourage investment in the economy. By creating a conducive environment for investment and addressing infrastructure needs, Nigeria is poised for sustained economic growth and development.