The Minister of Finance, Zainab Shamsuna Ahmed has assured foreign investors of the safety of their investments in the Nigerian trade and business sectors at large.
While speaking at the ‘forum on de-risking trade and investments in Nigeria’, Ahmed assured the foreign investors in a bid to clear the widely circulated perception of investment risks in the country.
The Minister referenced that the Federal Executive Council (FEC), in 2017, granted approval for the membership of Nigeria to the African Trade Insurance Agency (ATI).
According to Ahmed, the core mandate of the ATI is to facilitate private sector-led trade flows, investment, and ‘productive activities’ through the provision of insurance, co-insurance & reinsurance.
“The entrance of ATI has come at a most auspicious time indeed when confidence is returning to our economy,” Ahmed said.
The Minister explains what ATI functions as. She said; “ATl provides financial instruments and related services; and promote economic growth in member countries by attracting investments and facilitating trade to its member countries, offering commercial credit risk insurance, political risk insurance, political violence, terrorism and sabotage insurance, and bond insurance.
“It also facilitates exports, Foreign Direct Investment (FDIs) into and trade flows within the continent.”
Ahmed stressed that some of the risks mentioned are what are generally tagged as high-risk areas where Nigerian local insurance industry requires a complementary/helping hand.
“We are optimistic that consumption of ATl Products will have important impacts on Job creation; Infrastructure development; Transfer of technology; incremental availability of Bank and Financial Services funding (financial deepening); incremental export and sales to new and existing markets; increased profitability, import substitution and foreign exchange earnings,” she said.
Meanwhile, Foreign Direct Investment in Nigeria had increased by 435.64 USD Million in the second quarter of 2018. Foreign Direct Investment in Nigeria averaged 1279.72 USD Million from 2007 until 2018, reaching an all-time high of 3084.90 USD Million in the fourth quarter of 2012 and a record low of 435.64 USD Million in the second quarter of 2018.