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A former Nigerian Minister of Finance, Shamsudeen Usman, said on Wednesday that Nigeria’s long-term economic fundamentals remain very positive despite the current macroeconomic challenges facing the country as a result of fallen oil prices.

Speaking in Lagos today at an investors' conference organized by Renaissance Capital, Usman said Nigeria’s future prospects are more robust compared to other frontier emerging economies in Africa and Asia.

“Nigeria’s indicators are currently pointing southwards,” said Usman, who is also a former Minister of National Planning and former Deputy Governor of the Central Bank of Nigeria. “If you look at this short-term picture, you’ll be despondent. But the long-term fundamentals are still strong and positive. We’ve been petroleum junkies for decades, but low oil prices have sent us to rehab.”

Usman said, “Governors are now talking about boosting internally generated revenues and holding state investment summits. I hope this situation lasts longer.”

On the foreign exchange crisis, the former Minister of Finance urged the federal government to introduce flexibility to the forex market to improve access and stability.

“When I became CBN Deputy Governor in 1999, oil prices were low – at about $22. At that time, we tried all kinds of measures to allocate forex, including introducing the Dutch Auction System (DAS) and other measures. But we soon discovered that the best way to manage forex is to allow it float with the market.”

Usman said Nigeria needs a constitutional reform to allow the country save excess oil proceeds for periods of economic shocks.

“The constitution says every money in the Federation Account must be shared by all levels of government each month. That is one of the biggest reasons why our Sovereign Wealth Fund has not taken off unlike in other large petroleum exporting countries,” said Usman.

Renaissance Capital’s 7th Annual Pan-African Investor Conference brings together investors and corporate representatives from across the globe to discuss and promote investment into Africa’s fast-growing economies. From May 11-13, participants are expected to acquaint themselves with the investment opportunities on the continent. Nigeria's Vice President, Yemi Osinbajo, and other Nigerian business leaders are expected to speak at the event.