The federal government is considering providing risk mitigation in the form of guarantees to attract capital to some critical sectors, especially power and small and medium scale enterprises.

Finance minister Olusegun Aganga announced this at a time when Nigeria’s public debt stood at $29.6-billion as at the end of June 2010, with external debt around $4.3-billion.

‘I am currently in the process of establishing a Sovereign Risk Asset and Liability Management Unit within my office, with assistance from the World Bank, that will advise the government on the effective use of its balance sheet to provide such support measures where there are limited alternatives for stimulating private sector participation. The desk will also manage relationships with investor credit rating agencies,’ said Aganga to investors in London.

Aganga said that identified projects for private sector participation or Public Private Partnership (PPP) would be presented to investors soon.

Nigeria was identified as a top pick by some of the most influential investors in emerging markets who spoke at the Reuters Emerging Markets Summit in Sao Paulo in July.

Investors from especially the US, China and Europe have continued to make investment enquiries, according to the minister who said there are great opportunities in Nigeria. 

Source: Business Day