Yemi Kale: Why Nigeria is now investors’ best destination

ByYemisi Adeolu -May 26, 2018



The immediate post-recession period when the fundamentals of the economy are at the early stages of recovery is the best time to invest in Nigeria, the director general, National Bureau of Statistics (NBS), Yemi Kale, has said.

Mr Kale, who was speaking at the “Direct Investors’ Summit Nigeria’ organised by the Nigerian Investment Promotion Commission (NIPC) in Abuja on Wednesday, also said the primary reason the country’s economy went into recession in 2016 was the crash in global oil prices in 2014.

Latest data on the economy released on Monday by the statistics agency showed gross domestic product (GDP) growth improved consistently since the third quarter of 2016 from -2.34 per cent to about 2.11 per cent in the fourth quarter of 2017.

Although the rate slipped marginally by 0.83 per cent from the level attained in the last quarter of 2017, it remained in the positive zone in the first quarter of 2018 with a rate of 1.95 per cent.

Also, inflation has declined for 15 consecutive months from a high of 18.72 per cent in January 2017 to a two-year low of 12.48 per cent in April, within the target set in the Economic Recovery and Growth Plan (ERGP).

Trade balance and balance of payments have remained positive, while exchange rates have been stable, with foreign reserves at about $48 billion as at May 18.

Besides, capital importation in 2018 has maintained the increasing trend set in 2017 over 2016, with inflows at over 500 per cent higher than in the first quarter of this year.

“As these signs of recovery have emerged, foreign investment flows have started to return,” Mr Kale, noted.

“In Q3 2017 when the country’s exit from recession was announced, significant portfolio investment inflow was immediately recorded. It is a clear vote of confidence in the Nigerian economy post-recession that capital inflows have returned to 2014 levels.”

The DG, who is also the Statistician General of the Federation, said these improving indices have helped to restore investors’ confidence in the economic management process, while the various reforms being implemented would ensure the economy continues on a more sustainable path from recovery.

“These reforms are aimed at improving the business environment, simplifying tax administration, facilitating one-stop investment destinations, improving port operations.

“The best time to invest is now, when our economy, whose good fundamentals haven’t changed, is on at the early stages of recovery,” he said.

On how the economy went into recension, Mr Kale blamed it on the inability of the economy to withstand the low revenue stream as a result of the crash in global oil prices in 2014.

He said although the country’s economy rests on three main pillars, including the oil sector, “an import significant consumption-driven non-oil sector” and “an Investment-driven, non-oil sector,” the first pillar was the most dominant.

Despite contributing only about 10 per cent to the country’s economy, Mr Kale said the oil sector accounts for about 80 per cent of total government revenue for development and 95 per cent of foreign exchange.

The consumption-driven non-oil sector, which account for 52 per cent contributions to the economy relies on the oil sector for foreign exchange and other capital inflows to finance imports of intermediate/finished goods.

It also relies on the sector for funding for imported services to meet domestic demand in manufacturing, real estate public administration, trade, construction and financial services.

On the other hand, the investment-driven non-oil sector, which accounts for about 39 per cent direct and indirect contribution to the economy, he said at does not rely on the oil sector or on foreign exchange remittances for agriculture, arts & entertainment, administration, support services and some manufacturing.

Rather he said the sector harnesses local inputs of raw materials, intermediate goods and domestic labour as factors of production to meet domestic demand as well as exports.

While the first two pillars (or 61 per cent of the economy) depend on the unpredictable and volatile international crude oil prices and the peace in the Niger Delta region, the third pillar (or 39 per cent of the economy) depends on issues of security, ease of business, weather and (good or bad) policy decisions.

“All these mean, in reality, that the Nigerian economy is 61 per cent directly and indirectly dependent on crude oil,” he noted.

“This means, we have essentially been building our house (economy) on one pillar, supported by two other shaky, but more dominant pillars that we did not have control of.

“As long as the main oil sector pillar remained firm, our house (economy) continued to stand. But once that pillar became unstable, shaken by the developments in the global economy that are beyond our control, the house was prone to collapse.

“This was primarily why the economy could not withstand the low revenue stream that prevailed when oil prices crashed in 2014,” Mr Kale said.

The Executive Secretary of NIPC, Yewande Sadiku, said the theme of the summit was “Investment meets opportunities!”.

She said it was organised to provide opportunity for prospective investors to showcase their comparative and competitive advantages to foster development and growth.

https://www.today.ng/business/economy/yemi-kale-nigeria-investors-best-destination-117335

You can't even drive on our Federal roads without Fulani herdsmen taking pot shot at vehicles and trying to kidnap occupants yet this one says this is a good time to invest in Nigeria ..The best time to investbin Nigeria is when Buhari is out of that seat for good and contained

SalamRushdie:
You can't even drive on our Federal roads without Fulani herdsmen taking pot shot at vehicles and trying to kidnap occupants yet this one says this is a good time to invest in Nigeria ..The best time to investbin Nigeria is when Buhari is out of that seat for good and contained

That is an exaggeration. Millions of Nigerians travel on Nigeria roadways / engage in farming daily without being attacked by herdsmen. Moreover, the situation was worse under your hero. We will overcome our current security challenges.

On the economy front, the current administration is doing a lot on the ease of doing business, increase in tax base (number of tax payers), infrastructure and overall diversification of the economy.

One wailer already complained about economic good news


They literally hate good news


You better die now , because Nigeria is getting better and Buhari has 4 more years




Kee Yasef

Badbelle LiePobiaFraudians

SalamRushdie:
You can't even drive on our Federal roads without Fulani herdsmen taking pot shot at vehicles and trying to kidnap occupants yet this one says this is a good time to invest in Nigeria ..The best time to investbin Nigeria is when Buhari is out of that seat for good and contained

lmao @ typical ipob bitter, angry, frustrated, disgruntled and anti Nigerian sentiments..


Naija dey progress, Igbos dey get go crazy.

.

HtwoOw:
One wailer already complained about economic good news


They literally hate good news


You better die now , because Nigeria is getting better and Buhari has 4 more years




Kee Yasef

Badbelle LiePobiaFraudians

They have a way of reading negative meanings into all situation.

I just replied another one of them that claimed an article is fair but drew the conclusion that Buhari shouldn't be re-elected / shouldn't be allowed to recontest from a " fair article"

Their brain is wired to read only negativity , that's why they talk about hersdmen kidnapping millions of Nigerians on a thread there Bureau os statistics is showing us economy is growing tremendiously


Na their way ...

deji17:
They have a way of reading negative meanings to all situation.

HtwoOw:
I just replied another one of them that claimed an article is fair but drew the conclusion that Buhari shouldn't be re-elected / shouldn't be allowed to recontest from a " fair article"

Their brain is wired to read only negativity , that's why they talk about hersdmen kidnapping millions of Nigerians on a thread there Bureau os statistics is showing us economy is growing tremendiously


Na their way ...

They are unhappy with Buhari administration for two reasons.
1. They are mainly importers and Buhari is trying to wean us out of importation into a productive economy.
2. Buhari is not their choice candidate for President, so they will do everything to validate that position and to feel vindicated .

deji17:
They are unhappy with Buhari administration for two reasons.
1. They are mainly importers and Buhari is trying to wean us out of importation into a productive economy.
2. Buhari is not their choice candidate for President, so they will do everything to validate that position and to feel vindacted .

Oga, go and rest!

A million of your type and your Buhari can never stop an Igbo man from excelling...not on your lives!

Your obsession with IPOB, months after their unceremonious proscription, beats the imagination of every rational human

Look around you, and you will definitely see an Igbo man doing so well...even in the farthest part of an isolated forest.

And if you think that what Buhari is giving Nigeria is the true leadership deserving of a country of intellectuals, which control many world’s leading universities, you have another think coming.

SoNature:


Oga, go and rest!

A million of your type and your Buhari can never stop an Igbo man from excelling...not on your lives!

Your obsession with IPOB, months after their unceremonious prescription, beats the imagination of every rational human

Look around you, and you will definitely see an Igbo man doing so well...even in the farthest part of an isolated forest.

And if you think that what Buhari is giving Nigeria is the true leadership deserving of a country of intellectuals, which control many world’s leading universities, you have another think coming.

Yea right. We see how well they are doing in Asian and other prisons all over the world. Keep deceiving yourself.

deji17:
They have a way of reading negative meanings into all situation.

domelo et al clowns in Yoruba uniform check the activities of ur stock market which is a typical reflection of ur economy you will see that investors a pulling out their fund enmass

Redoil:
domelo et al clowns in Yoruba uniform check the activities of ur stock market which is a typical reflection of ur economy you will see that investors a pulling out their fund enmass

Check the DOW, NYSE etc. Its all gone down generally lately. Its a global thing at the moment and it keeps bouncing up and down lately. But it will rebound eventually. But you did not jubilate earlier in the year when Nigeria stock was doing so well and it was described as one of the best performing stocks in the world. Are you a sadist? One day, you will be okay.

Misleading headline! We need FDI figures of 2015 vs 2018!!

PMB is working, Nigeria is getting better.

God bless PMB & PYO and all patriotic Nigerians.

PMB/PYO TILL 2023.

Invest in which Nigeria? A country getting worse daily?

deji17:
Check the DOW, NYSE etc. Its all gone down generally lately. Its a global thing at the moment and it keeps bouncing up and down lately. But it will rebound eventually. But you did not jubilate earlier in the year when Nigeria stock was doing so well and it was described as one of the best performing stocks in the world. Are you a sadist? One day, you will be okay.

Notice that the stock market which started 2018 well took a dive for the bottom as soon as 93 Benue citizens were slaughtered. The herdsmen may kill the stock market investors.

BankeSmalls:


Notice that the stock market which started 2018 well took a dive for the bottom as soon as 93 Benue citizens were slaughtered. The herdsmen may kill the stock market investors.

As a vulture that eat carcass I can understand if news of killings is how you get your high / fix. You wake up every morning, sniffing around for news of killings.

deji17:
As a vulture that eat carcass I can understand if news of killings is how you get your high / fix. You wake up every morning, sniffing around for news of killings.

How you want to support the killings going on unchecked and still be talking investment on top of human blood spilling everywhere is just, sick.

Get help.

deji17:
They are unhappy with Buhari administration for two reasons.
1. They are mainly importers and Buhari is trying to wean us out of importation into a productive economy.
2. Buhari is not their choice candidate for President, so they will do everything to validate that position and to feel vindicated .

Tell that to primary 2 pupils, Buharri wey never ensure a little improvement in power supply is trying to wean who off importation? Buharri imports everything he uses, shoes, watches, clothes and even

We are going to start importing yam and cassava soon, as herdsmen slaughter farmers continually.

BankeSmalls:


How you want to support the killings going on unchecked and still be talking investment on top of human blood spilling everywhere is just, sick.

Get help.

The person that needs to get help is you as you go about sniffing for news of killings. That makes you look like a vulture.

deji17:


The person that needs to get help is you as you go about sniffing for news of killings. That makes you look like a vulture.

Human life is sacrosanct. Its more important than anything else, even investments. Tell your principal to protect human lives and stop playing deaf.

BankeSmalls:




Tell that to primary 2 pupils, Buharri wey never ensure a little improvement in power supply is trying to wean who off importation? Buharri imports everything he uses, shoes, watches, clothes and even pampers

We are going to start importing yam and cassava soon, as herdsmen slaughter farmers continually.

But we have been exporting Yam lately. Im sure that news makes you sad as usual.

USA citizens turns the gun and kill each other daily but their citizens don't wake up every morning singing and dancing about it. In the name of opposition, you are gradually turning into a monster.

BankeSmalls:


Human life is sacrosanct. Its more important than anything else, even investments. Tell your principal to protect human lives and stop playing deaf.

Army. police and other securities have been deployed . Some arrest has been made . The country will eventually overcome its security challenges. What else are you going to sing and dance about then, Mr undertaker?

deji17:


But we have been exporting Yam lately. Im sure that news makes you sad as usual.

USA citizens turns the gun and kill each other daily but their citizens don't wake up every morning singing and dancing about it. In the name of opposition, you are gradually turning into a monster.

So you want to copy the US in killings only?

deji17:


Army. police and other securities have been deployed . Some arrest has been made . The country will eventually overcome its security challenges. What else are you going to sing and dance about then, Mr undertaker?

Stop lying to yourself, not us.

BankeSmalls:


So you want to copy the US in killings only?

Every country has its challenges. We are working through ours and we will overcome. What else is new Mr Undertaker?

BankeSmalls:


Stop lying to yourself, not us.

You are the definition of lies.

deji17:
Every country has its challenges. We are working through ours and we will overcome. What else is new Mr Undertaker?

The new thing is that after Osinbajo and Amaechi sis a crying competition in Benue, herdsmen still went in a killed over 10 people that day, how do you defend that?

army has been sent ba?

BankeSmalls:


The new thing is that after Osinbajo and Amaechi sis a crying competition in Benue, herdsmen still went in a killed over 10 people that day, how do you defend that?

army has been sent ba?

Mr Undertaker, you rejoice over the killings but you are rejoicing too early.

Army Kills Four Armed Herdsmen, Arrests 20 In Benue

https://www.channelstv.com/2018/04/17/army-kills-four-armed-herdsmen-arrests-20-in-benue/

deji17:


Mr Undertaker, you rejoice over the killings but you are rejoicing too early.

Are you trying to get us to stop talking about the killings Mr. Stoneheart?

deji17:


Mr Undertaker, you rejoice over the killings but you are rejoicing too early.

Army Kills Four Armed Herdsmen, Arrests 20 In Benue

https://www.channelstv.com/2018/04/17/army-kills-four-armed-herdsmen-arrests-20-in-benue/

Stop the fake news, where are their pictures?