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Foreign investors still wary as Cardoso pitches for hot money inflows

Published

2 years ago

March 4, 2024

CBN Governor, Olayemi Cardoso

Foreign investors still wary as Cardoso pitches for hot money inflows

Data from the Nigerian Exchange (NGX) reveals that foreign participation in the Nigerian equities market dropped to 8.15% in January 2024, a decline compared to 13.92% and 12.76% recorded in the previous and corresponding month of 2023.

Specifically, a total of N651.52 billion was recorded as transaction in the Nigerian stock market in January 2024, in contrast to the N343.9 billion traded in the previous month.

Out of the N651.52 billion, foreign portfolio investment accounted for N53.11 billion in the review period while domestic transaction was N598.41 billion.

Foreign investments in Nigeria have dwindled significantly in recent years, following the aftermath of the COVID-19 pandemic, and has since remained underwhelming largely because of FX instability and dollar illiquidity.

The inability of foreign investors to easily repatriate their earnings as at when due has been a limiting factor deterring the participation of foreign investors in the Nigerian market.

As a result of low foreign inflows and high demand for the greenbacks, the naira has depreciated by 41% and 21% YTD against the US dollar at the official and parallel market respectively.

CBN embarks of total market reform

In a bid to manage FX volatility in the country, the CBN has rolled out several guidelines and circulars to the various market stakeholders in the country, ranging from commercial banks, IMTOs, BDCs, amongst others.
Some of these reforms include the unification of the foreign exchange market, bank reduction of Net Open Positions to 20% for short and 0% long in a bid to curb market speculative activities. The apex bank also removed all limits on margins for IMTO remittances, while introducing a two-way quote system.
However, despite the increased level of FX supply at the official market, the exchange rate has remained around the region of N1500/$ and N1600. Hence, the need to attract fresh dollar inflows to improve supply.

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Cardoso woos FPIs

The governor of the CBN, Yemi Cardoso engaged foreign portfolio investors last week to intimate them on some of the reforms by the apex bank to maintain price stability and liberalize the FX market in bid to instill confidence and attract fresh foreign investments.

While responding to questions from the various stakeholders, he highlighted some of the major actions taken by the CBN, which includes paying FX backlogs in excess of $2 billion.

The CBN governor noted that the bank has settled foreign exchange backlogs except for five commercial banks, while noting that the remaining will be settled in the coming days.

Recall that the Governor, earlier in February had revealed the genuine FX backlogs owed across economic sectors had dropped to $2.2 billion, with about $2.4 billion being invalid.

Some of the key take ways from the meeting include:

Interest Rates – NTB and Bond rates are expected to stay elevated due to the need to tame inflation, with new target at 21.4%.
Foreign Portfolio Investments – To maintain FP inflows, CBN will avoid policy flip flops. The recent flurry of Policy Circulars was well thought out.
Investor Confidence – CBN remains focussed is to rebuild the confidence level which was lost under the last Governor and embark on better communication and transparency with the market.
The apex bank also recently increased the benchmark interest rate by 400 basis points to 22.85%, increased CRR to 45%, while adjusting the asymmetric corridor around the MPR to +100/-700 basis points. This is aimed at tightening naira liquidity while encouraging inter-bank trading activities as opposed to more credit to the public.
Others include the expectation of a more frequent OMO issuance. Also, according to the CBN, CRR is expected to be done in a non-disruptive manner going forward. Long Term expectation is that CRR maintenance will be automatic. Noteworthy, a few Banks were slightly above 45% before the adjustment.

Expert view

According to Victor Onyema, Lead, Portfolio Management Norrenberger Asset Management, there is some encouragement with the CBN’s recent efforts to restore market confidence and enhance communication with investors. This proactive approach is likely to generate renewed interest in the Nigerian investment landscape, particularly amongst Foreign Portfolio Investors (FPIs).

“While certain issues, such as the FX backlog, have previously caused caution among FPIs, the recent announcements and communication style of the CBN demonstrate a strong commitment to attracting foreign investment. The planned swift resolution of the FX backlog, as reiterated by the CBN governor, is a positive step towards rebuilding trust and confidence,” he said.
“The anticipated further rise in interest rates presents attractive opportunities for FPIs in the OMO market. Additionally, higher fixed income yields are likely to trigger some capital movement into the equity market. However, savvy investors recognize this as a potential opportunity to acquire potentially undervalued stocks at favourable entry points.”
“Overall, the CBN’s recent initiatives, coupled with the evolving market dynamics, suggest a potentially optimistic outlook for the Nigerian investment space. If these play out as planned by the CBN FPIs confidence should increase and inflows would come in,” he added.

Foreign investors still wary as Cardoso pitches for hot money inflows

Related Topics:Cardoso foreign investors

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INEC Warns ADC Against Holding Convention Without Supervision

Published

6 hours ago

April 3, 2026

Trends Admin

Chairman of the Independent National Electoral Commission (INEC), Joash Amupitan

INEC Warns ADC Against Holding Convention Without Supervision

The Independent National Electoral Commission (INEC) has cautioned the African Democratic Congress (ADC) against proceeding with its planned congresses and national convention without proper supervision and in defiance of an existing court order.

Chairman Joash Amupitan issued the warning during an interview on Arise TV on Friday, after the ADC insisted on going ahead with its convention despite INEC’s derecognition of the leadership faction linked to David Mark and Rauf Aregbesola.

Amupitan stressed that INEC’s actions were guided by legal considerations, particularly a subsisting court order restraining the ADC from taking steps that could undermine ongoing legal proceedings. “Don’t do anything. Don’t take any step that will render any proceeding before the court nugatory,” he said.

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He explained that the ADC’s plan to conduct congresses and a national convention is already part of a pending legal process, with motions related to the activities yet to be determined by the court. Ignoring the court’s directive, he warned, could result in invalidated elections or nullified internal party decisions, citing precedents in Zamfara and Plateau states where failure to comply with court orders affected electoral outcomes.

Amupitan highlighted the risks of repeating past mistakes, stressing that while the ADC is free to act as it chooses, INEC would not risk supervising illegal or unauthorized party activities. He reinforced the importance of adhering to the Electoral Act and judicial directives to ensure that party events are legally recognised and free from future challenges.

The INEC Chairman’s warning comes amid heightened tension within the ADC, with the faction led by David Mark facing derecognition and ongoing litigation over the party’s legitimate leadership. Analysts note that the statement underscores INEC’s commitment to rule of law, legal compliance, and internal party democracy, especially as Nigeria approaches the 2027 general elections.

INEC Warns ADC Against Holding Convention Without Supervision

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Presidency Clarifies Why Tinubu Met Plateau Victims Only at Airport

Published

7 hours ago

April 3, 2026

Trends Admin

President Bola Ahmed Tinubu with victims of palm Sunday Attack in Plateau State

Presidency Clarifies Why Tinubu Met Plateau Victims Only at Airport

The Presidency has clarified why President Bola Tinubu did not leave the airport during his recent visit to Jos, amid public criticism. Officials said the decision was driven by tight scheduling, logistical constraints, and aviation safety concerns.

President Tinubu visited Jos North Local Government Area, where he met with families of victims killed in the Angwan Rukuba attack. Speaking to the bereaved, he said, “You have no light at the airport, and I have to fly back within the next 10 minutes. To the victims, there’s nothing I can give you, whether it’s money in millions, but console you and promise you that this experience will not repeat itself.”

The visit was attended by political supporters, traditional rulers, security operatives, and other stakeholders. However, Tinubu’s airport-only engagement drew criticism, with some accusing him of insensitivity toward grieving families.

In response, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, explained that Tinubu’s schedule on Thursday included receiving Chadian President Mahamat Idriss Déby Itno at the Presidential Villa before traveling to Iperu in Ogun State. Following a security briefing by Plateau Governor Caleb Mutfwang, the Ogun trip was canceled, and an emergency visit to Jos was arranged overnight.

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Officials said logistical challenges made a town visit impractical. The airport runway does not support night flights, and the road distance from the airport to Jos township is about 40 minutes. These factors made it unfeasible for the President to visit the conflict site, meet victims in town, and return to the airport safely before dusk.

To ensure engagement, representatives of affected communities were brought to a hall adjoining the airport, allowing Tinubu to meet directly with victims, local leaders, and security officials. Among attendees were the Minister of Defence, the Chief of Army Staff, and the Inspector General of Police, who had visited Rukuba to assess security operations.

During the meeting, the President consoled victims, listened to their concerns, and assured justice would be delivered. He also promised the deployment of 5,000 AI-enabled surveillance cameras to monitor the city and enhance the identification and arrest of troublemakers. Furthermore, he invited community leaders to Abuja for additional talks on long-term solutions to recurring violence in Plateau State.

The Presidency described the visit as a strategic, high-level engagement aimed at addressing the root causes of conflict, rather than a symbolic gesture. Officials emphasized that Tinubu’s approach prioritized safety, efficiency, and direct interaction with key stakeholders while adhering to flight and logistical constraints.

Despite the criticisms, the televised meeting was seen as reassuring by residents, signaling the President’s commitment to peace, security, and community-driven solutions in Plateau State.

Presidency Clarifies Why Tinubu Met Plateau Victims Only at Airport

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Heavy Security Deployed at INEC Headquarters Abuja Amid Planned ADC Protest

Published

15 hours ago

April 3, 2026

Trends Admin

Heavy Security Deployed at INEC Headquarters Abuja Amid Planned ADC Protest

Armed security forces on Thursday surrounded the Independent National Electoral Commission (INEC) headquarters in Abuja as tensions escalated over a planned protest by supporters of the African Democratic Congress (ADC). The move comes amid a deepening leadership crisis within the party, which has split into rival factions, prompting agitation and nationwide attention.

Eyewitnesses reported a strong presence of Nigeria Army personnel, with armoured vehicles stationed at strategic points around the INEC complex in the Maitama district. The Nigeria Police Force, Department of State Services (DSS), and Nigeria Security and Civil Defence Corps (NSCDC) also reinforced security, restricting movement and monitoring activities closely to prevent potential clashes.

The heightened security follows INEC’s decision to remove the names of Senator David Mark and former Osun State Governor Rauf Aregbesola as National Chairman and National Secretary of the ADC from its official portal. The commission said this action complied with preservatory orders issued by the Court of Appeal, directing all parties to maintain the status quo until the Federal High Court delivers a final judgment.

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The ADC dispute has created two competing camps: one backing David Mark and the other supporting Nafiu Bala Gombe as acting chairman. Both sides have sent conflicting communications to INEC, further complicating the situation and sparking the threat of protests at the commission’s headquarters.

“The names of the current National Working Committee members led by Senator David Mark… would be removed from the INEC portal pursuant to the order of the Court of Appeal to maintain the status quo ante bellum,” INEC stated, clarifying that it would suspend recognition of any faction until judicial resolution.

Supporters of the ADC have accused INEC of bias and interference in the party’s internal affairs. Civil society groups and political commentators have urged restraint and neutrality from the electoral commission to prevent further escalation of tensions.

Security operatives set up checkpoints and roadblocks around INEC headquarters, with armed personnel maintaining a visible presence. The deployment is viewed as a preventive measure to avert potential clashes or breakdown of law and order while the legal dispute unfolds.

Political observers note that the heavy security presence at INEC highlights the growing intersection of party politics and public order in Nigeria, as the ADC leadership tussle remains unresolved and could influence upcoming electoral processes.