TheCable

Lukman Otunuga, research analyst at FXTM, says the Economic Growth and Recovery Plan (ERGP) unveiled by Muhammadu Buhari’s government will increase foreign investments in Nigeria.

Otunuga said the plan is ambitious and could possibly achieve its aim of seven percent GDP growth by 2020.

“A feeling of positivity was felt across the Nigerian economy this week, following the highly optimistic economic growth recovery plan for 2017-2020 that painted an encouraging outlook for the nation,” he said.

“The four-year plan was anchored around achieving healthy economic growth and sustainable development, boosting sentiment towards Nigeria which is currently in the process of a critical structural transformation.

“With a strong focus on the nation augmenting both public and private sector efficiency, whilst also increasing overall productivity, a growth forecast of 7% by 2020 could be a possibility.”

Speaking on its viability to drive foreign direct investment, Otunuga said the plan may be well received by the international  community.

“Moving forward, Nigeria needs to achieve a stable macroeconomic environment, reinvest in agriculture and reinforce infrastructure to promote sustainable economic growth.

“This recovery plan may be received positively by the international investment community and as such, could translate to an increased FDI in the medium to longer term.”

The ERGP seeks to create 15 million jobs by 2020, liberalise the foreign exchange market and reduce government stake in some valuable national assets.