CBN gov, Cardoso reveals willingness of foreign investors, direct investment to return to Nigeria

Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has revealed that foreign portfolio investors (FPIs) are showing renewed interest in returning to the Nigerian market.

This development was announced by Cardoso during an exclusive interview with Arise Television on Monday, marking a potential turning point in the country’s financial market attractiveness.

“Today, I will say that we have a situation where a lot of foreign portfolio investors are very interested in coming back to the Nigerian market. It is incredible.”

Continuing, Cardoso emphasized the importance of leveraging existing resources to attract more foreign direct investment and portfolio inflows.

He clarified that contrary to the perception of FPIs as “hot money,” the governor views these investments as essential components of a diversified foreign exchange portfolio, whether sovereign or corporate.

Hear him “This is a problem I sometimes have when many blame the central bank for the foreign exchange situation. It is a problem I have because we rely on what comes in. We don’t produce foreign exchange… All we can try and do is use that to leverage for more to start coming in, and that also includes foreign direct investment, and foreign portfolio investors.

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“Sometimes, some people look at FPIs and say it is hot money. I don’t believe that is the case. I take it that in any portfolio that you have of foreign exchange, whether it be sovereign or corporate, you will have a diversified mix of portfolio investors.

“Today, I will say that we have a situation where a lot of foreign portfolio investors are very interested in coming back to the Nigerian market. It is incredible.”

The governor highlighted the recent strategic financial decisions made by the country, such as the Nigerian National Petroleum Corporation (NNPC) and other major MDAs moving their funding directly to the central bank. These moves are seen as strong confidence boosters, indicating that Nigeria aligns with the directions favoured by global investors.

Cardoso said: “The recent move to have NNPC and some of the other MDAs move their funding straight to the central bank also sends a powerful signal. It boosts confidence that Nigeria is finally going in the direction that many investors want to see it go.”

He added: “As the confidence comes back and their money starts coming in, which I see happening, volatility begins to reduce.”

By Babajide Okeowo

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