Lower Inflation And Stable Currency Will Draw Foreign Direct Investment To Nigeria - IMF

Foreign direct investment will flow into Nigeria if the currency is stable and inflation is low.

According to the International Monetary Fund (IMF), reduced inflation and stable currency rates will draw more foreign investment into Nigeria.

This was revealed on Tuesday during an interview on Arise Television with Ari Aisen, the IMF representative in Nigeria.

He reaffirmed his support for the elimination of fuel subsidies and the unification of exchange rates, stating that doing so would improve Nigeria's economic prospects.

According to Arisen, if inflation declines, exchange rates become more predictable, opening the door for prospective investment into Nigeria.

He also mentioned that the country's GDP growth has been moderate, which was to be expected given the increased cost of fuel and inflation.

"After the position that needs to be well managed to avoid potential reversal, policies of subsidizing fuel and controlling exchange rate will lead to a much better outlook for the Nigerian economy," he said.

According to the National Bureau of Statistics, Nigeria's headline inflation rate for August was 25.80%.