In a significant development for Nigeria’s economy, Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) has revealed that foreign portfolio investors (FPIs) are displaying renewed interest in the Nigerian market. This announcement, made during an exclusive interview with Arise Television, signals a potential turning point in the country’s financial market attractiveness.
Governor Cardoso emphasized the importance of leveraging existing resources to attract more foreign direct investment (FDI) and portfolio inflows. He addressed the perception of FPIs as “hot money,” stating that these investments are essential components of a diversified foreign exchange portfolio, whether sovereign or corporate.
Contrary to blaming the central bank for the foreign exchange situation, Governor Cardoso highlighted the reliance on incoming foreign exchange and the need to use it to attract more investments. He expressed confidence in the diversified mix of portfolio investors in Nigeria’s foreign exchange portfolio.
Governor Cardoso highlighted recent strategic financial decisions, such as the Nigerian National Petroleum Corporation (NNPC) and other major MDAs moving their funding directly to the central bank, as confidence boosters aligning with global investors’ preferences.
He expressed optimism about the Nigerian economy’s outlook, particularly regarding the inflow of foreign investments. This confidence is expected to stabilize the Naira, which Governor Cardoso believes is undervalued due to panic-induced distortions.
Governor Cardoso emphasized the importance of maintaining a positive and proactive stance, reassuring the market that it is not the time for panic or cynicism. He affirmed that Nigeria is making the right policy decisions to steer the economy towards growth and stability.
Nairametrics