Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has provided insights into the potential stabilization of the Naira, linking it to increased foreign investments.
In an interview with Arise Television on Monday, Cardoso highlighted the positive impact of the reforms initiated by the Bola Tinubu administration, which he stated are attracting investors back to Nigeria.
According to Cardoso, foreign investors have shown keen interest in comprehending the ongoing reforms and the trajectory of the country’s economy. He emphasized that as international investors inject funds into Nigeria, the volatility in foreign exchange rates will diminish, consequently leading to the stability of the Naira.
He stated, “Currently, we are witnessing a scenario where numerous foreign portfolio investors are expressing a strong desire to re-engage with the Nigerian market. Among all stakeholders, foreign investors have demonstrated a systematic understanding of the reforms being implemented and have recognized the positive direction they are leading the nation.”
Cardoso highlighted the significance of having proceeds from crude oil sales deposited in the central bank, which instills confidence in foreign investors and contributes to economic stability.
He further explained, “The recent decision to channel funds from NNPC and other government agencies directly to the central bank sends a robust message and enhances investors’ confidence. As confidence returns and capital inflows increase, volatility diminishes. With reduced volatility and a stabilized foreign exchange market, the Naira, currently undervalued, will find its stability.”