Nigeria to set up investment & growth fund

Nigeria's Federal Executive Council has recently approved the establishment of the Nigeria Investment and Growth Fund, marking a significant step towards the country's Poverty Reduction with Growth Strategy. The fund is set to be structured akin to a private equity fund, focusing on investments in priority sectors to spur economic growth and development. This move has been met with both anticipation and skepticism, as stakeholders await further details and clarity on the fund's operations and impact. Egie Akpata, Director of UCML Capital, shed light on this development in a recent interview with CNBC Africa. He delved into the potential implications of the fund on Nigeria's infrastructure sector, the challenges posed by subsidies on government revenue and borrowing plans, and the impact of global economic trends on the country's borrowing strategies. The interview also touched on debt sustainability for subnational governments and the guidelines presented by the Debt Management Office and the World Bank for managing state debt. Akpata highlighted the importance of coordination and sustainability in state borrowing practices to avoid financial crises and ensure fiscal stability. The approval of the Nigeria Investment and Growth Fund reflects a strategic effort by the government to attract foreign investment, stimulate economic growth, and address key developmental challenges in the country. However, the success of this initiative hinges on effective implementation, regulatory reforms, and transparency to build investor confidence and drive sustainable development. As Nigeria navigates its economic landscape, the establishment of the investment and growth fund serves as a beacon of hope for a brighter economic future, albeit with challenges and uncertainties along the way.