KPMG: Nigeria Among World’s Four Major Investment Destinations

Nigeria has been ranked as one of the four major investment destinations and growth areas in the world.

According to KPMG, one of the world’s foremost audit, financial and tax advisory firms, Nigeria’s newfound status followed the disappointing returns recorded by the BRICS, with the exception of China.

BRIC was the term coined by Goldman Sachs’ economist, Jim O’Neill in 2001, to symbolise the emerging global economic powerhouses of Brazil, Russia, India and China. The term was later expanded to BRICS to accommodate South Africa.

However, KPMG at the weekend, said the poor regulatory environment, slower than expected growth prospects and disappointment returns on investment recorded by the BRICS, with the exception of China, has worked in the favour of Mexico, Indonesia, Nigeria and Turkey which have been termed the MINTs, as well as the ASEAN (Association of South East Asian Nations) region, now considered the new destinations for global capital and investors.

Global Chairman, KPMG International, Mr. Michael Andrew, who was on his first visit to the country last week, told reporters in Lagos that Nigeria and the other countries among the MINTs have attracted increasing investment offers and enquiries through the services of KPMG, amongst others investment and financial advisories, with the view of taking advantage of the high rates of return on investment.

According to him, with the exception of China, international investors have found the Brazilian, Russian, Indian and South African economies disappointing in the last few years and are looking for safe havens with better returns for their investments.

“The offers for the MINTs are intense and we are getting a huge amount of enquiries about these countries. People want to know how to do business in these countries, how to access the markets and how to take advantage of the long-term growth that is coming.

“If you are a CEO and you are sitting in London, New York or Frankfurt, because the market is growing and the cash inflow to these markets, the markets are putting pressure on the CEOs to try and find new markets where they can find growth.

“Particularly, companies in consumer markets such as financial services, food and energy are the ones that they are really focused on in these emerging economies,” he said.

Andrew, who spoke alongside the National Senior Partner, KPMG Professional Services, Mr. Seyi Bickersteth, and Partner, Management Consulting, KPMG Professional Services, Joseph Tegbe, said the international investors are interested in investing in the Nigerian capital market and could later move to the real and other sectors of the economy.

He said: “Initially they are going to move into the stock market, then they will move into the property market, then they will start to move into the real sector in economies such as Nigeria.

“So everyone is watching where this cash goes, but the real question is what are the factors that will actually drive this growth?”   

Elaborating on the determining factors, Andrew said: “People are looking for a growing middle class, they are looking for a predictable regulatory environment, and they are looking for stable and transparent corporate governance structures.
“In the last few weeks, I have been to Mexico, Indonesia, India and then Nigeria, and their similarities are remarkable – between those economies and this one are the ones attracting a lot of interest.

“In the last few years, we have talked about the BRICS being the area of focus. But if you talk to international investors, their views will be that the BRICS, with the exception of China, have been quite disappointing.
“So they have found it difficult to invest in these countries, their regulatory environment is unpredictable and they have not been able to get good returns on their investments.

“As such, people are now focused on the MINTs – Mexico, Indonesia, Nigeria and Turkey. They are the four countries that international investors are really focused on for growth and investment.”

Bickersteth while fielding questions on the power reform and recent sale of successor companies of Power Holding Companies of Nigeria (PHCN), gave a pass mark to the Federal Government on the exercise.

He said: “The process is being handled by someone for whom I have a lot of respect for – Mr. Atedo Peterside. The process has been very transparent.

“However, you are not going to satisfy everybody in this particular deal, so my own opinion is that we must move forward. We need to move forward because if we don’t we are going to have a real problem in the power sector.”

Stressing that it has been shown quite clearly that the public sector cannot deliver the amount of electricity that the country needs to form the industrial base in the country, he observed that Nigeria needs the resources and the expertise of the private sector.

“On the overall basis, the power reform programme is something that I welcome; the process has been fair and the valuation, from what I understand, has been fair. So let’s move on and deliver the power objective that we say we want to deliver,” he submitted.

http://www.thisdaylive.com/articles/kpmg-nigeria-among-world-s-four-major-investment-destinations/141153/

Later the liar lia momammed would come and lie to nigerians about how our economy is failing.anyway he can only deceive his brainwashed AC-N hypocrites that the Nigerian economy is failing not Intelligent nigerians. When fitch rated lagos state Economy due to the good work of this governent this same goons praised fashola. I would really like to see their hypocritical comment on this thread.well is glad to knw that this government is doing a lot to improve our situation that has been destroyed by buhari and his co journeymen ibb and abacha.kudos to GEJ and his team.but more needs to be done

I am sure Gbawe 'the chronic' sadist will avoid this thread.

solomon111: I am sure Gbawe 'the chronic' sadist will avoid this thread.

please don't mind those hypocritic who disguise themselves as critics.nigeria would countinue to move forward no matter what their likes think

@MODS, I hvn't said dis for a rili long time: plz, take dis to d FP asap. Coming from KPMG, dis is a v.good endorsement for d country, a MINT nation, lol.

Did you guys note d KPMG boss said bout d ongoing Electricity Reforms in d last paragraphs??

taharqa: @MODS, I hvn't said dis for a rili long time: plz, take dis to d FP asap. Coming from KPMG, dis is a v.good endorsement for d country, a MINT nation lol.... Did you guys note d KPMG boss said bout d ongoing Electricity Reforms in d last paragraphs??

this type of thread don't make it to front page if it is about celebrating fashola putting street light in jibowu and maryland u would see it there the thread is not about fashole and his mediocre achievement

taharqa: @MODS, I hvn't said dis for a rili long time: plz, take dis to d FP asap. Coming from KPMG, dis is a v.good endorsement for d country, a MINT nation lol.... Did you guys note d KPMG boss said bout d ongoing Electricity Reforms in d last paragraphs??

Yea the last paragraph was my best part...

Chai! If only boko nonsense would stop. Issues like kidnapping and armed robbery (mainly southern problems) would gradually disappear with the improving economic indices.

One of our major problems in this country is our penchant to engage in 'politics with bitterness'; there's too much politicking in the country and this causes a 'toxic' atmosphere where people/groups don't mind sabotaging the interests and good fortune of the entire country for sectional and personal interests.

Imagine a country where everyone was pulling in the same direction, and 'politics' was done with some civility?

make all these people no dey talk again jo!
Na the backward of everything dem dey talk na e we dey always experience.

Somalia too are very lucrative to invest infact they do better than Nigeria in the piracy sector.

Bull shit may be KPMG is talking of bunkering in that case there is no place like Nigeria.

Where is leventis, where is liver brothers, where are the textile industries in kano and kaduna.

Power alone cannot allow you invest and compete with imported goods talkless of the rampant insecurity in every part of the country no thanks to boko haram, Mend,massob,opc, kidnappers etc etc

We all wish Nigeria to be great but the present realities go in a parallel way with genuine investment.

Jonathan keeps bleeping the haters.

Sai GEJ 2015!!

solomon111: I am sure Gbawe 'the chronic' sadist will avoid this thread.

Fire burn the E-witches and wizards that are about to invade this thread.

I knew there would be a "but" in the news.. every good news about nigeria de carry "but".. e.g super eagles won afcon but never got paid

solomon111: I am sure Gbawe 'the chronic' sadist will avoid this thread.

Don't mind that old retiree with mortgage burden and ex wife palava in England. The other thread he was busy fuming and threatening that GEJ would pay for scheming out disloyal PDP members in the battle for BOT chair. On that occasion, he was more worried about democracy within the same PDP he dislikes so much.

I will always maintain that GEJ is incompetent and certainly not the best but in comparison with the loud mouthed SW politicians and the diabolic terrorists up north, he is the GOD SENT indeed

GEJ FOR 2019 & BEYOND

Nigeria has huge investment potential but also huge Infrastructural,Security and Judicial problems!
Investment will come but in will be calculated strategic (i.e certain geopolitical areas)investment and not carpeted (i.e all areas)investment!

As investors seek to protect investment hot zones (troublesome Northern states)would be mostly avoided as HQs or Bases but products will still get there.

Areas like Abuja,Lagos and other "relatively" stable places would see foreign dollars flood them in years to come! This will come with benefits and disadvantages. It will create employment and make available Venture capital to entrepreneurs with viable ideas. It would also make owners of property very very rich as foreign investors buy up properties in these areas those that already own would see the value of their properties sky rocket. The disadvantage is obviously to those who can't afford to buy or build as it would become many times harder to be a property owner.

Investors would have to embrace the crime and tribal strife that is rife in Nigeria (as in India and Brazil too)there are still many ways to make money round these problems! There is lots of money to be made in Naija.Fact!

karl max: Later the liar lia momammed would come and lie to nigerians about how our economy is failing.anyway he can only deceive his brainwashed AC-N hypocrites that the Nigerian economy is failing not Intelligent nigerians. When fitch rated lagos state Economy due to the good work of this governent this same goons praised fashola. I would really like to see their hypocritical comment on this thread.well is glad to knw that this government is doing a lot to improve our situation that has been destroyed by buhari and his co journeymen ibb and abacha.kudos to GEJ and his team.but more needs to be done

well stated!

Though i don't like Jonathan and his corrupt government, i love this news. It's a plus to his administration if what the KMPG said is true and i'm very happy and optimistic that the future Of Nigeria is really bright.

What do u expect from a country with someone like Okonjo Iweala as Finance minister and chief economy planner.
She is a rare treasure to the Government of GEJ
.

I am very positive about the future outlook of Nigeria

Slow & steady, we will definitely get there.

Ozin: I am very positive about the future outlook of Nigeria

Same here

Johnpaul88: Though i don't like Jonathan and his corrupt government, i love this news. It's a plus to his administration if what the KMPG said is true and i'm very happy and optimistic that the future Of Nigeria is really bright.

Now this is what it means to be a true critic. Slam the government when they get it wrong and praise when they get it right...not the Lai mohammed kind

I no dat if dos investment cme 2 nìgeria,day wil avoid d northern part of nigeria. So in invarably let d south kip growing while d north kip shrinking

Jonathan na good market wey don begin sale itself. He promised Nigerians that by 2013 haters will say otherwise.

Johnpaul88: Though i don't like Jonathan and his corrupt government, i love this news. It's a plus to his administration if what the KMPG said is true and i'm very happy and optimistic that the future Of Nigeria is really bright.

Nigeria has never had a corruption-free government & 'll neva have because it has become a culture in our country. It's not jus about d govt. Go 2 d grassroot, u'll understand wat am saying. But a more transperent govt. like dis one will get us there.

I have never doubted that this is the best time ever in the history of this nation. Never had the country been governed with this uncommon zeal, focus and idea as we are seeing with this present administration. The president and his team had remained focus and undaunted despite the level of sabotage by the BH sect and the AcN/ CPC propaganda , pulling down syndrome on the other hand. The level of mediocrity by the opposition started playing itself out recently by their gradual backing out of a developmental tour agreed by all parties with an agreed shared responsibility to assess the level of progress the country is making with her democracy. Their reasons are still being trailed with suspicion that their ass may be opened as these goons have enjoyed undue media propaganda and have brainwashed their people with lies that federal govt is not doing anything in their states. Forinstance, the visit to Edo state, Oshiomohle had told my people that the popular and very economically viable Ugbowo and Akpakpava road constructions were done by his administration, he had already taken the full credit for the ongoing renovations of schools across the state etc , but today the informed ones among us know better, but must a governor discredit the president to be viewd as a performer? Exactly what Fashola is doing. FG has a very huge presence in Lagos but lagosians might think all they see are being done by the state govt. It beats my imagination that all we do is to sabotage our collective values and growth including the image of the country because of politics instead of building together. In advanced countries of the world the people come together to promote their collective values and interest immediately after election but it is the exact opposite in Nigeria. Elections are won based on ideology and not on propaganda and sabotage as seen especially with ACN. The people you seek to misinform today may get wind of the truth and turn against you when it matters most. A word is enough for the wise.

Nigerians just love deceiving themselves shaaa, i don't know if a Canadian will leave his fairly stable country and start looking for an uncertain country to invest in. How many long term investments in manufacturing or industrial goods are we attracting? ZERO. All we have is a deluge of Chinese, Lebanese and Indian investors with short term oriented and substandard projects. These People who are short of strong business ethics. Most of them use and pay our people so poorly. I have said it again and again that any country that build its economy on these is heading for failure.

I want a very strong opposition in Nigeria to keep those in power, grounded. I want the APC stuff to succeed and at the same time for PDP to remain strong so that both can be able to Win election at any level.

meine: Nigerians just love deceiving themselves shaaa, i don't know if a Canadian will leave his fairly stable country and start looking for an uncertain country to invest in. How many long term investments in manufacturing or industrial goods are we attracting? ZERO. All we have is a deluge of Chinese, Lebanese and Indian investors with short term oriented and substandard projects. These People who are short of strong business ethics. Most of them use and pay our people so poorly. I have said it again and again that any country that build its economy on these is heading for failure.

oga go and argue this ur theory with KPMG and moreover were in the article did it mention the race of people that are runing to to nigeria to invest in nigeria.if u like don't tap into the tranformation of this country,keep being a pessimist while other nation take advantage of the oppotunities in ur country

We can consult for foreign firms that wish to have a presence in Nigeria.

Omerian Consult: We can consult for foreign firms that wish to have a presence in Nigeria.

sharp guy my brother tap into this news and empower yourself while the lazy hypocrites continue their hypocracy