TheCable

A new report by EY Africa says Nigeria has improved on attracting foreign direct investments.

The Africa Attractiveness report, which was released on Monday and titled Turning Tides, said Nigeria got 25% more FDI projects in 2017 compared to 2016.

“In line with its recovery from recession in 2017, Nigeria garnered 25% more FDI projects. According to the World Bank, Nigeria was among 10 economies globally with the strongest improvement in their business environment last year,” the report read.

“The country jumped 24 places on the Ease of Doing Business index, thanks to concerted government efforts to tackle red tape, mismanagement and corruption. US companies were particularly confident about Nigeria in 2017, launching 22 projects versus 10 in the previous year.

“South African, Chinese and UK investors also increased their FDI activity into Nigeria.”

Despite the improved ranking, 20 countries were said to attract FDIs better than Nigeria with Rwanda attracting the most.

According to the report, Nigeria’s reluctance to allow the exchange rate float freely prolonged the recession.

“The largest and third largest SSA economies, namely Nigeria and Angola, having suffered severe recessions through 2016 and into 2017, acknowledge the need for diversification,” it read.

“However, it is worth noting that until recently, both countries have been reluctant to allow the exchange rate to float freely, as a result of which, they faced prolonged recession.

“Though these economies are recovering well because of significantly stronger oil prices, their growth might be challenged again should oil prices begin falling.”