CBN’s reforms are attracting more foreign investors, says global, Nigerian analysts.

Major financial analysts across the global have expressed optimism that Nigeria’s investment climate has significantly improved, paving way for foreign investors swooping on Nigeria assets.

According to the analysts the development has largely been spurred by the impact of the Central Bank of Nigeria (CBN) reforms in the financial sector now spreading across key sectors of the economy.

The country is now getting a favorable nod from investors, pushing stocks higher and bond yields lower as painful reforms restore confidence.

Already, Nigeria’s sovereign risk spread has fallen to the lowest level since January 2020, erasing the premium accumulated during the pandemic and subsequent strain on its economy.

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.

“Nigeria appears to be back in business as long-awaited economic reforms take shape,” said Emre Akcakmak, portfolio manager at East Capital. Yields on Nigeria’s $1.5 billion eurobond due in 2034 have declined to 9.69 per cnt, the lowest since its early December launch, and a domestic debt auction was three-times oversubscribed recently, with the Open Market Operation bills allotted at 21.45 per cent versus 22.65 per cent.

Source: VANGUARD