- Local investors confident in Nigeria
- Foreign investors a lot more skeptical
- huge investments in oil and gas sector
While foreign investors shy away from the risks of Nigerian investments, local businessmen are taking the risk. According to an FT article on Nigerian investments, local investors have more confidence in the Nigerian market. Africas richest man Aliko Dangote, Tony Elumelu and Abdulsamad Rabiu are leading the pack of local investors braving the investment scene.
Like other oil-dependent economies, Nigeria is experiencing a steep fall in internally generated revenue (IGR). The country is experiencing high inflation brought on by the rising cost of food and other essential services. Last week, it was announced Nigeria had posted negative growth figures resulting in a recession. The worst in 33 years and the 2nd one in the last four years.
Despite this, the energy sector has seen huge investments. Dangote is currently building the worlds largest oil refinery on the outskirts of Lagos. Elumelu following investments in the electricity generation is concluding plans for an oil block deal while Rabiu is set to build a 200,000 barrel a day oil refinery in oil Akwa Ibom state.
Speaking on the resilience of these investors, Devakumar Edwin, the GMD Dangote refinery said: “we know the rules, [and] how we can mitigate the risk and manage the challenges.”