Aduragbemi Omiyale
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Oscar Onyema, has expressed optimism that the policy direction of the current administration will attract investments into the country.
Speaking at the 7th edition of the International Court of Arbitration (ICC) Africa Conference on International Arbitration in Lagos, he said the decision of President Bola Tinubu to remove the fuel subsidy, unify exchange rates and ensure that investors and foreign businesses repatriate their hard-earned dividends and profits home, will make nation’s economy witness more investment flows.
Foreign transactions on NGX Limited have decreased by 38.5 per cent from N616 billion in 2007 to N379 billion in 2022, owing to the FX constraints in the country.
Furthermore, foreign transactions accounted for about 16 per cent of the total transactions in the first four months of 2023, while total foreign transactions currently stand at N62.18 billion in the same period.
However, Mr Onyema, speaking during a panel session, said there is bound to be more investment flows in Nigeria.
“All these are the right noises for money. Money goes to the least resistant places to get the best risk adjustment returns without unnecessary hassles because there is competition globally.
“On what we have seen in the last eight years, there has been an outflow of foreign portfolio investments predominantly, and more than half of our markets are outside of America, but with these policy changes, you can begin to understand why we are very optimistic that these flows will come back and with it, attract additional flows,” Mr Onyema said.
When questioned about the promising signs of growth across Nigeria and Africa, he pointed out that the growing population of young entrepreneurs who are driving their business consistently, increased traction in the Fast-Moving Consumer Goods (FMCG) industry and the fact that Nigeria is one of the largest producers of oil.
“These signs point to where we have strength, where we have a competitive advantage in Africa, and where we can start the journey to get more value-added output,” he noted.
