Economy
CBN Forex Policy Making Nigeria Unattractive—Foreign Investor
By Dipo Olowookere
The foreign exchange (forex) policy of the Central Bank of Nigeria (CBN) has again come under criticism and this time, from a foreign investor.
Recall that recently, the CBN was hit hard by the Nigerian Economic Summit Group (NESG), saying the current FX policy of the banking sector regulator was making things difficult for the country rather than make them better. And for this, the CBN did not pity the group as it lambasted its leadership, casting aspersions on its credibility.
The NESG was not the first to slam the multiple exchange rates system of the local central bank as the International Monetary Fund (IMF) and the World Bank and others have also criticised the policy.
Even a former Governor of the CBN, Mr Charles Soludo, has advised the central bank under the leadership of Mr Godwin Emefiele, to scrap the multiple exchange rates system though the CBN has explained why it is maintaining the policy despite the criticisms.
At a virtual conference recently, a portfolio manager at Emerging Markets Investment Management Ltd, known as Duet Group/UK, Mr Erik Renander, said the apex bank’s stance on forex was making Nigeria unattractive to foreign investors.
The London-based fund manager, according to Bloomberg, invested in Nigeria in 2017 by purchasing treasury bills after the devaluation of the Naira, when rates jumped to more than 20 per cent.
However, in February 2020, he sold all his holdings of bills and equities and has vowed not to re-enter the local market until the currency situation gets better.
Twice this year, the CBN has devalued the local currency; from N306 per Dollar to N360 per Dollar and again from N360/$1 to N380/$1.
The Naira has not had it good this year because of a shortfall in the crude oil earnings as a result of coronavirus disease, which crashed prices at the global market to below $20 per barrel at a point in the year. Now, the price has been hovering around $40 per barrel.
But with the way things are going, Mr Renander believes the Nigerian currency will remain under pressure and have suggested that to attract foreign investors, local investors must take control of the market, especially the equities segment.
“You could be sitting in front of a great opportunity,” he said, noting that, “Generally, when the currency devalues, the local stock market goes up a lot.
“Maybe the Naira is going to go to N550 per Dollar, and the Nigerian stock market [All-Share Index] could go to 50,000 points; you could easily have a double.”
But for him and other offshore investors, he may not consider returning to the local market because “it’s hard for me to come into Nigeria when I just don’t have an idea when I am going to get my money out again and yields aren’t high enough to compensate for that risk.
“The forex policy of the Central Bank of Nigeria is really hurting the attractiveness of Nigeria in general, both in equity and fixed income,” Mr Renander declared.
In April 2020, Business Post reported that some foreign investors who could not take their funds back in Dollars were forced to re-invest in the local market, which caused more liquidity in the system, making rates and yields to drop to single-digit lows.
At the last treasury bills sale last week, the CBN sold the three-month bill at 1.10 per cent, while the one-year instrument was cut to 3.05 per cent from 3.34 per cent.
Business Post reports that apart from the official exchange rate window known as the interbank, where the Dollar sells for N380, there is the Investors and Exporters (I&E) segment, the Bureaux De Change (BDC) window and the black market.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said ongoing reforms and strategic policy implementation in Nigeria’s petroleum sector are driving significant investments and strengthening the country’s position as a leading energy destination in Africa.
Mr Lokpobiri stated this at the Management Retreat of the Ministry of Petroleum Resources, where he stressed the need for improved institutional performance and accountability to sustain growth in the sector.
According to the Minister, the federal government has deliberately pursued far-reaching reforms aimed at creating a stable and investor-friendly environment capable of attracting local and foreign capital into the oil and gas industry.
“From far-reaching institutional reforms to the effective implementation of strategic policies, we have remained committed to carrying all stakeholders along, fostering a conducive environment for investments to flourish,” Mr Lokpobiri said.
“As a result, our petroleum sector has witnessed significant investments that continue to strengthen Nigeria’s position as a leading energy destination.”
The Minister noted that the gains recorded in the sector were the product of collective efforts across the Ministry and its agencies, commending staff for their dedication and professionalism.
“The Management Retreat of the Ministry of Petroleum Resources provided an important platform to reiterate that these accomplishments would not have been possible without the collective dedication, professionalism and teamwork of every staff member across the Ministry and its agencies,” he stated.
Mr Lokpobiri said the retreat, themed Driving Institutional Performance and Accountability in the Petroleum Sector for Sustainable National Development, underscored the importance of continuous improvement in service delivery and operational efficiency.
Drawing lessons from the theme, he urged officials of the Ministry and regulatory agencies to intensify efforts toward enhancing institutional effectiveness and strengthening governance frameworks.
“I encouraged that we must redouble our efforts, continuously improve the quality of our services, and strengthen institutional performance,” he said.
The Minister further emphasised the continued relevance of fossil fuels in the global energy mix, stressing that Nigeria must leverage its hydrocarbon resources to drive economic growth while ensuring citizens benefit from ongoing reforms.
“With fossil fuel as the dominant source of energy, we must ensure that Nigerians experience the benefits of our progress and that Nigeria remains the preferred investment destination in Africa and a globally competitive hub for energy investments,” Mr Lokpobiri added.
By Aduragbemi Omiyale
The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.
The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.
The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.
In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.
Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.
The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).
Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.
In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.
Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.
The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.
Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.
A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.
ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.
The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.
As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.
Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.
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