Tony Chukwunyem and Abdulwahab Isa 
- Cardoso restates commitment to diaspora engagement
Nigeria is finally getting a favourable nod from investors, pushing stocks higher and bond yields lower as painful reforms restore confidence, according to a Bloomberg report.
The news agency stated that Nigeria’s sovereign risk spread had fallen to the lowest level since January 2020, erasing the premium accumulated during the pandemic and subsequent strain on its economy, adding that the NGX All Share index had been up 11 per cent since December 2, triple the rise of the MSCI gauge for developing-world equities.
The renewed confidence comes just as the Governor of Central Bank of Nigeria, Olayemi Cardoso, promised a reinforced engagement with the diaspora community.
“While US President Donald Trump’s widening trade war has taken emerging markets on a wild ride, Nigeria has quietly held its own, attracting foreign capital reassured by currency reforms and other measures designed to revive the economy of Africa’s most- populous nation,” Bloomberg said It quoted portfolio manager at East Capital, Emre Akcakmak, as saying:
“Nigeria appears to be back in business as long-awaited economic reforms take shape.” Akcakmak reportedly cited key measures, such as improved currency liquidity, leeway for investors to repatriate their profit, and the stable naira.
“We feel the Central Bank of Nigeria (CBN) will continue to stem any sharp appreciation of the naira to limit profit taking from the fast money community,” Akcakmak said.
The apex bank, which is expected to hold interest rates steady at 27.5 per cent when it announces the decision of the Monetary Policy Committee’s (MPC) meeting on Thursday, raised borrowing costs aggressively last year to curb inflation and stabilize the local currency. The naira suffered prolonged volatility after President Bola Tinubu eased its peg against the dollar in 2023, alongside other reforms.
The shock, which triggered a 70 per cent devaluation against the greenback, took most of last year to fade until CBN steps to improve liquidity and transparency eventually gained traction. The local currency has held in a narrow range between N1,470 and N1,550 per dollar since early December.
That composure is having widening benefits. “Portfolio inflows have likely been supported by improved confidence amid key structural reforms, better FX market functioning and moderating dollar-naira volatility, as well as the still- robust nominal yield buffer,” said Samir Gadio, head of Africa strategy at Standard Chartered Plc.
