Bloomberg reports portfolio inflows to Nigeria jumped since last month’s presidential elections, easing pressure on the currency of Africa’s biggest oil producer, according to the central bank.
“There is more confidence that the economy will grow as the outlook of foreign investors is very upbeat,” Emmanuel Ukeje, director of financial markets in Abuja at the Central Bank of Nigeria, said in an e-mailed response to questions asked by Bloomberg on Monday. “The inflows will be sustained.”
Nigerian bonds and equities surged after President Goodluck Jonathan conceded defeat to former military ruler Muhammadu Buhari following the March 28 and 29 vote, soothing investors’ concerns about a disputed result in a country with a history of election-related violence.
The Nigerian Stock Exchange All Share Index rose for a third day on Monday to the highest since April 2 as the country’s capital markets recover from an almost 50 percent drop in Brent crude prices since the end of June. The naira has fallen 18 percent against the dollar in that period, while average local-currency bond yields have climbed more than 320 basis points to more than 15 percent.