In a recent interview on Arise TV, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, emphasized the imperative for policy reforms to entice foreign portfolio investors (FPIs) and bolster capital inflows into the country.
Cardoso’s remarks come amidst growing concerns over currency market instability and declining capital importation figures, as reported by the National Bureau of Statistics.
Highlighting the declining trend in capital importation, Cardoso underscored the need for strategic interventions to reverse the negative trajectory and restore investor confidence. While portfolio investment accounted for a modest percentage of total capital importation, Cardoso noted the discernible interest among FPIs in Nigeria’s evolving economic landscape.
Contrary to misconceptions about FPIs’ motives, Cardoso emphasized their methodical approach in evaluating Nigeria’s policy reforms and economic direction. He stressed the importance of understanding investors’ perspectives and aligning reforms with their expectations to foster sustained investor interest.
Cardoso also referenced the endorsement of Nigeria’s economic progress by rating agencies, which further validates FPIs’ confidence in the country’s potential. He highlighted the symbiotic relationship between investor sentiment and ongoing reforms, emphasizing the need for continuous improvement to attract and retain foreign investment.
Addressing recent government initiatives, including the redirection of funding flows to the central bank, Cardoso applauded these measures as signals of Nigeria’s commitment to a conducive investment climate. He underscored the significance of policy coherence and proactive governance in instilling investor confidence and fostering economic resilience.
In conclusion, Cardoso advocated for a holistic approach to economic reform, recognizing the evolving dynamics of global investment trends. By embracing strategic reforms and fostering investor-friendly policies, Nigeria can position itself as an attractive destination for foreign capital, driving sustainable economic growth and development.