The Central Bank of Nigeria’s (CBN) high interest rate policies and foreign exchange strategy have significantly attracted Foreign Portfolio Investors (FPIs), with inflows reaching N696.88 billion in Nigeria’s stock market over the first nine months of 2024 (9M’24). This marks a 170.1% increase from N258 billion in the same period in 2023 (9M’23).
According to Vanguard’s analysis, foreign investor interest intensified in early 2024, as the CBN raised the Monetary Policy Rate (MPR) by 450 basis points, reaching 27.25% from February to September. The MPR serves as the minimum benchmark for investments in Nigeria’s capital and money markets.
Domestic investors also significantly increased their activity, committing N3.271 trillion in 9M’24—a 33.3% rise from N2.454 trillion in 9M’23.
Analysts at Afrinvest Securities Limited noted that the CBN’s consistent rate hikes to control inflation and stabilize the Naira have appealed to foreign investors. “The improved outlook among foreign investors was driven by CBN’s stance on inflation and Naira stability,” they stated.
Highcap Securities Limited’s Vice Chairman, David Adonri, added that increased FPI inflows positively impact the foreign exchange market by improving the demand-supply balance, thus boosting foreign reserves. The rise in foreign investments also reflects growing investor confidence in Nigeria’s economic reforms.
The Court of Appeal, Makurdi Division, on Thursday set aside the ruling of the Benue…
The Benue State Police Command has confirmed the tragic killing of prominent Otukpo-based lawyer and…
A bill proposing a six-year single term for the office of the president and state…
The Senate has approved President Bola Tinubu’s ₦1.77 trillion ($2.2b) loan request following a voice…
Finnish-Nigerian separatist leader, Simon Ekpa, and four others have been arrested in Finland for involvement…
Finnish-Nigerian separatist agitator, Simon Ekpa, and four other persons have been arrested in Finland over…