The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, is slated to engage with foreign portfolio investors in a crucial meeting on Wednesday, February 28, 2024.
This strategic dialogue, organised by the Nigerian Exchange Group (NGX) in partnership with the CBN and supported by financial powerhouses such as Standard Bank, Citi Bank, J.P. Morgan, and Standard Chartered, underscores a concerted effort to strengthen the ties between Nigeria’s financial sector and the global investment community.
The meeting revealed through a flier that had since been widely circulated before the Zoom link was deactivated, is poised to serve as a pivotal platform for the CBN to communicate directly with international investors.
The engagement is particularly timely as the CBN embarks on critical reforms aimed at stabilizing the naira and bolstering the Nigerian economy.
Foreign investors sell off more Nigerian stocks
In a market analysis, data from the Nigerian Exchange Limited (NGX) revealed a notable downturn in foreign investor engagement with the Nigerian stock market.
- January 2024 saw a decline in foreign investors’ purchases of Nigerian stocks by approximately 9.7%, with investments dropping to N15.48 billion from N17.48 billion in December 2023. This shift occurred despite a series of reforms aimed at revitalizing the market, which had previously triggered a significant surge in market activity.
- The data further highlights an increase in the volume of stocks sold by foreign investors, with sales reaching N37.33 billion in January 2024, marking a 22.8% rise from the N30.39 billion recorded in the preceding month. This trend suggests a growing caution among foreign investors, who appear to be retreating to the sidelines, possibly due to a reassessment of market conditions or global economic uncertainties.
This cooling of foreign investment interest comes at a time when the CBN and the NGX are spearheading initiatives to bolster foreign direct investment (FDI) inflows into the country. Such investments are critical for Nigeria’s economic stability and growth, aiming to attract international capital to spur the nation’s economic development.
The decline in foreign stock purchases, juxtaposed with the increase in sales, signals a cautious stance from international investors despite the Nigerian market’s potential.
As the CBN and NGX lead this engagement with foreign investors, the broader expectation is for a positive impact on foreign direct investment inflows, which are pivotal for Nigeria’s long-term economic success and stability.
