By PETER EGWUATU
The new Gross Domestic Product, GDP of $510 billion will enhance inflow of Foreign Direct Investment, FDI and Foreign Portfolio Investment, FPI into the country, said the President of Chartered Institute of Stockbrokers, Mr. Ariyo Olushekun.
He stated this at a press conference on the forthcoming 3rd CIS national workshop to hold in Abuja from Wednesday, 23rd April to Friday, 25th April, 2014 .
The new GDP figures of $510 billion was the outcome of the rebasing of the country’s GDP. The base year was moved to 2010 from 1990 reflect the changes that have occurred in the structure of the economy in the last 20 years.
According to Olushekun “The impact of GDP rebasing will be positive in the capital market as it will attract more foreign investors into the Nigerian capital market, thus increasing value of FPI. It means that operators and other stakeholders need to work hard to create securities that will attract investment.
The rebasing has reduced the contribution of market capitalization to the GDP. This means that our market has become highly under-represented and foreign investors who are already looking at the Nigeria’s economy at a larger scale would be looking for opportunity to invest in the market.”
Continuing, the CIS President said “Beside the increase in portfolio investment, we should expect increase in FDI. Foreign investors would want to come to Nigeria to invest directly in the country since there are abundant untapped resources in the country.
Collaborating the views of the CIS President, the Group Managing Director of BGL Plc, Mr. Albert Okumagba said “The rebasing has placed the country as the biggest economy in Africa. Nigeria’s GDP, which placed the country as Africa’s largest economy, has exposed the country’s investment potential to the world.”
He added that the rebasing had exposed sectors where Nigeria’s economy recorded dynamic growth, stressing that such areas would attract more investment inflows. He noted that apart from attracting investors, the rebasing would also expose those areas of the economy that had not witnessed astronomical growth.
While commenting on the forthcoming CIS workshop, Okumagba said, the its previous workshops had contributed positively to the development of the capital matket.
According to him “The CIS contributed significantly to the establishment of Asset Management Corporation of Nigeria, AMCON. We played a major role in ensuring that AMCON bill is passed. Also the amended investment guidelines for Pension Fund Asset by the Peccom is also part of the CIS’s effort.