Norrenberger CEO on 2021 investment outlook for Nigeria

Nigeria, one of Africa's largest economies, is poised to make a significant impact in the global investment arena in 2021. With the impending reopening of its land borders, the commencement of the African Continental Free Trade Agreement (AfCFTA), and the country's economic recovery path, investors are closely watching the opportunities that lie ahead. Tony Eder, the CEO of Norrenberger Financial Group, shared his insights on the investment outlook for Nigeria in a recent interview with CNBC Africa. Eder expressed optimism about the investment environment in 2021, highlighting the expected return to normalcy with the emergence of COVID-19 vaccines. He acknowledged the challenges Nigeria faces on the domestic front, including policy issues, healthcare infrastructure, access to finance, trade integration, and security. Despite these hurdles, Eder remains bullish on Nigeria's potential for economic growth and investment. Key Points: 1. Economic Recovery and Policy Issues: Eder emphasized the importance of addressing critical policy issues in Nigeria, such as healthcare, infrastructure, and access to capital. He noted that resolving these challenges is crucial for setting the stage for a more favorable investment climate in 2021. 2. Investment Landscape in Equities and Fixed Income: The CEO highlighted the trends in Nigeria's equities and fixed income markets, predicting continued interest in equities due to negative real returns on fixed income instruments. He also mentioned the Central Bank of Nigeria's shift towards boosting domestic credit, which could impact the performance of fixed income securities in the coming year. 3. African Continental Free Trade Agreement (AfCFTA) and Economic Competitiveness: Eder discussed the potential benefits of the AfCFTA, such as tariff reduction and increased trade volumes. However, he cautioned that practical barriers, including regulatory inconsistencies, customs issues, and capital constraints, could hinder the full realization of the agreement's potential. He emphasized the need to address these challenges to ensure the agreement benefits all participating countries. In conclusion, Eder underscored the importance of balancing theoretical benefits with practical considerations when evaluating the impact of the AfCFTA on Nigeria's economy. The success of the agreement will depend on addressing key barriers and fostering a conducive environment for trade and investment across the continent. Quote: According to Tony Eder, 'We believe strongly that once Nigeria is able to deal with some of these issues, 2021 is going to be a better year for us for investment generally in Nigeria.'