Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), revealed on Monday that foreign portfolio investors (FPIs) are keen on investing in Nigeria but are awaiting policy reforms to facilitate the process.
During an interview on Arise TV, Cardoso addressed concerns regarding the recent fluctuations in the currency market and shed light on FPIs’ interest in Nigeria’s investment landscape.
According to the latest report from the National Bureau of Statistics, capital importation into Nigeria in the third quarter of 2023 amounted to $654.65 million, marking a decline of 43.55 percent compared to the same period in 2022. Portfolio investment constituted 13.31 percent ($87.11 million) of total capital importation in Q3 2023, while foreign direct investment contributed 9.13 percent ($59.77 million).
Discussing FPIs’ interest, Cardoso emphasized that these investors are methodically assessing Nigeria’s policy reforms and the direction of its economy. He highlighted the importance of understanding that FPIs contribute to a diversified mix of investors, emphasizing that they are closely monitoring the reforms being implemented.
Cardoso noted that the reports from rating agencies regarding Nigeria’s economic progress align with the sentiments of FPIs, reinforcing their confidence in the country’s trajectory.
He emphasized that Nigeria cannot afford to isolate itself from global investors and must incorporate foreign investments as part of its economic strategy. Cardoso also pointed out that recent government initiatives, such as directing ministries and agencies to channel their funding through the central bank, are sending positive signals to foreign investors, boosting confidence in Nigeria’s economic direction.
In conclusion, Cardoso highlighted the need for continued reforms to attract foreign investment and steer Nigeria towards sustainable economic growth.
