Control Risks, an independent, global risk consulting company, has insisted that the foreign exchange (forex) crisis, which has complicated the actual value of the naira in dollar terms, remains a major setback for investments inflow into the country.
The development, according to the company, is keeping investors on the sidelines, as there are elevated fears that devaluation might catch up with investments.
The company’s official also raised doubts over the source of the rising profile of the nation’s forex reserves, saying it does not inspire confidence, as its sustainability cannot be ascertained.
Africa analyst at the company, Gillian Parker, said the challenge of repatriating profits by companies is a concern and explained that holding down the devaluation option will only inflict more pains. Senior Analyst, Daniel Magnowski, pointed out that beside the non-clarity in the source of rising reserves, there is need for predictability of actions, as it is the central focus of clients.
