The Debt Management Office has said the Federal Government is implementing several reforms to attract more investments into the country.
The Director-General, DMO, Ms Patience Oniha, said this during the third edition of Coronation Merchant Bank’s virtual interactive session series, themed, ‘Nigeria moving beyond COVID-19 – Opportunities for investors.
While delivering the keynote address, she said the Nigerian economy remained resilient despite economic and social headwinds elicited by the pandemic.
According to her, the composition and diversification of the country’s Gross Domestic Product and revenue base make for more stable growth going forward.
She said, “The Nigerian government has introduced several reforms, which are being implemented to attract more investments, grow and further diversify the country’s GDP and revenue.
“Nigeria remains open to investment opportunities, which exist in securities (in the domestic and international markets) and direct investments in various key projects across the country. The government also encourages public-private partnerships.”
The Senior Vice President, FMDQ Group, Emmanuel Etaderhi, said, “Countries borrow for very valid reasons, mostly to put them in a stronger position in terms of their economic strength.
“However, borrowing beyond the ability to pay makes debt unsustainable. This has an impact on investments, whether external or local, because the pricing of the instruments within the financial markets will be affected, as well as the ability to earn externally.
“It is very important to maintain a sustainable debt level and more importantly, to use the debt for productive purposes, which can have a multiplier effect on the economy and generate more revenue.”
The Managing Director/Chief Executive Officer, Coronation Merchant Bank, Banjo Adegbohungbe, noted that the COVID-19 pandemic had compounded the challenges of raising debt for developing countries, including Nigeria.
He said, “Since the advent of the COVID-19 pandemic, the global economy has been impacted adversely and this has resulted in escalating the challenges in raising debt for more developing and emerging economies.
“Nigeria has not been left out of these complexities. Even though we have successfully raised debt this year, it is obvious that the challenges we face are substantial and have been exacerbated by the pandemic.”