The Group Chief Executive Officer of the Nigerian Exchange Group, Oscar Onyema, is optimistic that Nigeria’s capital market will experience a return of foreign investors following the policy direction of the new administration. Speaking at the ongoing International Court of Arbitration Africa Conference on International Arbitration in Lagos, Onyema stated that President Bola Tinubu’s inauguration speech and his willingness to remove fuel subsidy, unify exchange rates, and permit investors and foreign businesses to repatriate their dividends and profits will motivate investors to come in.
Onyema also mentioned that the right noise for money needs to be made, and money goes to the least resistant places where it can get the best risk adjustment returns. With these policy changes in place, Onyema believes the country is now an attractive destination for foreign investors.
Foreign transactions on the NGX have declined by 38.47% from N616bn in 2007 to N379bn at the end of 2022 due to forex exchange constraints in the country. The Director-General of the Securities and Exchange Commission, Lamido Yuguda, believes the challenges in the market can be addressed.
Yuguda during the last meeting of the Nigerian Capital Market Committee said, “this is a situation that is not permanent, we expect the foreign exchange situation in their country to substantially improve. There are a lot of economic developments in the country today that actually lays the foundation for a much more vibrant foreign exchange in the country.”
It is hoped that the policy changes aimed at positively impacting the market will attract more foreign investors, which would lead to an increase in foreign portfolio investments and additional flows.
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