The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has urged Austrian investors to explore Nigeria’s vast investment opportunities, saying the economic reforms of President Bola Tinubu’s administration have repositioned the country as an attractive destination for profitable investments.
Bagudu made the call while addressing the GPF Global Vienna Meeting in Vienna, Austria, through a video message titled, “Financing Africa’s Future: The Vienna Stock Exchange as a Gateway to European Capital Markets for African Government Projects.”
The Minister described Nigeria as a proven investment market with strong absorptive capacity, driven by its population of more than 200 million people.
“We are confident that Nigeria is a proven market of choice with strong absorptive capacity, with over 200 million people. So, Austrian companies and businesses well-rooted in technology can operate profitably in Nigeria,” he told participants.
Bagudu explained that the Tinubu administration’s economic reforms were designed to improve macroeconomic predictability, restore investor confidence and eliminate distortions in the economy, particularly in the foreign exchange market.
He said the reforms had yielded significant gains within three years, adding that the creation of a rule-based capital market had helped reposition the Nigerian economy for increased investment.
Bagudu stated that the reforms had also contributed to stabilising the country’s macroeconomic environment and making the foreign exchange market more predictable.
“The forex market has stabilised, with free entry and exit. Foreign reserves have risen significantly to over $50 billion, providing over 11 months of import cover,” he said.
The Minister further noted that the reforms had contributed to a significant increase in government revenues across the three tiers of government, thereby providing greater capacity to deliver essential services to citizens.
Making a case for increased Austrian investment in Nigeria, Bagudu said “improved bond spreads reflected growing confidence in the Nigerian economy.”
He also noted that Nigeria and Austria had demographic similarities and comparative economic advantages that could strengthen financial and investment relations between both countries.
Nigeria’s ambition to grow its economy to $1 trillion by 2030 has made the mobilisation of foreign capital increasingly important, with the Austrian stock market offering an opportunity to attract investment into the country, he said.
Bagudu said that the Ministry of Budget and Economic Planning, the Ministry of Finance and Austrian officials, in collaboration with the Austrian Stock Exchange, had established ESME Limited as a special-purpose vehicle to finance investments in Nigeria.
He explained that the company’s board includes two representatives from the Ministry of Finance Incorporated and prominent Austrian businessmen.
The Minister said ESME Limited would issue bonds on the Vienna Stock Exchange to finance investments by Austrian and other foreign companies in key sectors of the Nigerian economy, including green technology, waste-to-energy, textiles, pharmaceuticals, agriculture and water.
