Bagudu Woos Austrian Investors, Says Nigeria Offers Returns Above 20%
By Patience Ikpeme
The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has told investors in Austria that Nigeria is ready for their money, pointing to a country of over 200 million people, a stable naira, and returns that already have existing investors smiling to the bank.
Bagudu made the pitch while addressing the GPF Global Vienna Meeting in Vienna, Austria, on Tuesday. Speaking through a video message on the topic “Financing Africa’s Future: The Vienna Stock Exchange as a Gateway to European Capital Markets for African Government Projects,” the minister told his audience that President Bola Tinubu’s economic reforms have turned Nigeria into a destination where businesses can earn decent returns.
“We are confident that Nigeria is a proven market of choice with strong absorptive capacity, with over 200 million people,” Bagudu said. “So, Austrian companies and businesses well-rooted in technology can operate profitably in Nigeria.”
The strongest part of the minister’s message, and the one likely to catch the attention of any investor weighing whether to bring money into the country, was his claim on returns. He said investors already doing business in Nigeria are earning over 20 per cent return on their investment, and that figure is in United States dollars, not naira. For foreign investors comparing opportunities across different countries, a dollar return of that size is not something that comes along every day.
Bagudu explained that the reforms rolled out by the Tinubu administration were designed to bring predictability to the economy and give private capital holders the confidence to invest, largely by removing distortions in the system, including in the foreign exchange market. He said these changes have delivered real gains within three years. According to him, the naira market has settled down considerably. “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.
He also pointed to the effect of the reforms on government revenue, noting that all three tiers of government, federal, state, and local, have seen a marked rise in income, giving them more room to fund services for their citizens.
Making his case further, Bagudu said Nigeria’s bond spread now points to greater confidence in the economy from the investment community. He drew a comparison between Nigeria and Austria, arguing that the two countries share similar demographic patterns and complementary economic strengths, which he believes makes the Austrian stock market a natural fit for Nigeria to tap into.
The minister linked all of this to Nigeria’s target of building a one trillion dollar economy by 2030, saying that ambition makes the search for foreign capital even more pressing. He said Nigeria sees real potential in the Austrian stock market as a source of that capital.
Perhaps the most concrete outcome of the engagement between both countries is a new company called ESME Limited. Bagudu explained that his ministry, the Ministry of Finance, and Austrian officials working with the Austrian Stock Exchange set up the company as a special purpose vehicle to channel investment into Nigeria. He said the company’s board includes two representatives from the Ministry of Finance Incorporated alongside respected Austrian businessmen.
According to the minister, ESME Limited plans to issue bonds on the Viennese Stock Market to raise money for investment by Austrian and other companies in sectors such as green technology, waste-to-energy, textiles, pharmaceuticals, agriculture, and water in Nigeria, with room to expand further over time.
Bagudu said the Tinubu administration is pleased with the progress the company has made ahead of its planned bond issue and believes it will help strengthen business ties between Nigeria and Austria.
He closed his remarks with an assurance to any investor still weighing the decision, telling them plainly that they would not regret doing business in Nigeria.
