Coronation Capital Launched, Unveils Report on Nigeria’s Progress Since 1999
Coronation Capital, a new African proprietary investment company established to leverage the power of capital for long term development in Nigeria and sub-Saharan Africa, has been formally launched in Lagos.
The firm headed by a former chief executive officer of Access Bank Plc, Mr. Aigboje Aig-Imoukhuede, released its inaugural report on Nigeria’s economic progress since 1999 entitled: "The Fourth Republic: Economy and opportunities beyond politics."
Established as a specialist investment firm for Africa, in Africa, Aigboje noted that Coronation Capital would focus on making long term and sustainable investments in the financial services, digital technology, oil and gas and real estate sectors of the economy.
A statement by the company explained that the maiden report provides a comprehensive assessment of the trends in Nigeria’s economy since the return to civilian rule in 1999 and sets out the basis for the macro-economic investment approach, which it stated would characterise Coronation Capital’s strategy.
From a perilous state in 1999, with real incomes having fallen since 1979, an unsustainable budget deficit and debt to GDP ratio and high inflation, the report seeks to provide an independent assessment of economic development, the successes, outside the politics and the challenges and opportunities that remain.
The report showed that
Nigeria recorded an exponential economic growth since 1999: from a GDP base of $36 billion in 1999, which then ranked Nigeria as the fifth largest economy in Africa, to a $522 billion economy in 2013, the largest in Africa by a significant margin and 1,350 per cent growth over 15 years.
Similarly, in terms of debt reduction, it stated that Nigeria’s debt profile today compares very favourably with that of 1999 when the country's external and internal debt profile represented 87 per cent of GDP as compared to 18.32 per cent in 2013.
Furthermore, it noted that "Improvements in monetary policy, combined with the consolidation process in the banking sector have led to a considerably stronger banking sector. The CBN Act of 2007 instituted the CBN’s operational independence which enabled its leadership to swiftly and effectively resolve the 2009 banking crisis.
"Budget discipline: The oil price benchmark in the budget, combined with a budget deficit ceiling of 3% and the privatisation of state assets all contributed to significant improvements during the period. An impressive foreign direct investment (FDI) profile could be regarded as one of the clear benefits of the return to democracy in Nigeria. FDI has grown tremendously and the Nigerian economy has continued to show the capacity to attract investment despite currently adverse security conditions in some parts of the country".
Announcing the establishment of Coronation Capital and the launch of the report, the company’s Chairman, Aig-Imoukhuede, said: “The performance of the Nigerian economy continues to defy conventional wisdom given its many challenges. This is a reflection of the strength of its underlying fundamentals which have caused it to thrive despite the numerous challenges it has faced. From a position, in 1999, where the economy was at rock bottom and only the 5th largest in Africa, to today’s position as the largest economy on the continent we have seen immense change. But there is much work to do to ensure that change continues, and reaches all corners of society.”
He added: “My own professional history has been heavily influenced and guided by the economic progress Nigeria has made since the return to democracy. From my banking career at Guaranty Trust Bank, through to my leadership of Access Bank, my career has mirrored the progress of Nigeria’s financial services sector and exposed me to each of the core sectors of the economy that have driven wider growth.
"That experience has left me as a fully-fledged believer in a macro-economic approach to investment in Nigeria and is the driving force behind the establishment of Coronation Capital, an African focused proprietary investment company operating to the highest standards of investment management.
"Coronation Capital will leverage that experience to invest across the specific sectors of the Nigerian economy that we believe have the potential to grow exponentially over the coming years. We believe in the power of capital to act as a significant catalyst for long term economic growth and the creation of social value and we are committed to investing for the long term.”
On his part, a member of Nigeria’s Monetary Policy Committee and a contributor to the report, Dr Doyin Salami, said: “The fourth republic: Economy and opportunities beyond politics is the first fully independent analysis of the progress of the Nigerian economy since the return to democratic rule. It is informative that when you strip out the political rhetoric and look at the basic fundamentals the progress that has been made is clear.
"Yes, more could, and should have been done, but the Nigerian economy has not only evolved and matured, but grown at a rate almost unmatched globally. If a country so dominated by political instability and rhetoric, while lacking basic infrastructure can do this, then the potential it holds following the first transition from one party to another is even more significant."