Fuel Subsidy: Nigerian economy will witness more investment flows – NGX

The Nigerian Exchange Group Plc (NGX) is optimistic that increased investment will pour into the country’s economy.

This was said by Oscar N. Onyema, group chief executive officer of the Nigerian Exchange Group, at the 7th edition of the Lagos-based International Court of Arbitration (ICC) Africa Conference on International Arbitration.

Readiness of the new administration

Onyema made his remarks in light of the fact that the incoming administration was prepared to stop fuel subsidies, stabilize currency rates, and make sure that foreign investors and corporations brought their hard-earned earnings and profits back home.

“Foreign transactions on the NGX have decreased by 38.5% 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% 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,” Onyema said.

However, the Group’s Chief Executive Officer noted that President Bola Tinubu’s inaugural speech was impressive while asserting that there will inevitably be greater investment flows into Nigeria.

“All these comments are the right noise for money. Money goes to the least resistant places where it can get the best risk-adjusted returns without unnecessary hassles because there is competition across the globe.

“On what we have seen in the last eight years, there has been an outflow of foreign portfolio investments predominantly and so more than half of our markets 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”, Onyema said.

Young entrepreneurs

When asked about the encouraging signs of growth in Nigeria and Africa, he cited the rising number of young business owners who are consistently driving their companies forward, increased traction in the Fast-Moving Consumer Goods (FMCG) sector, and Nigeria’s status as one of the continent’s top oil producers.

“These signs point to where we have strength, this is where we have a competitive advantage in Africa and this is where we can start the journey to get more value-added output”, he said.

READ MORE ARTICLES

Top Investments That Will Make You a Billionaire In 2023

Fuel Subsidy: How fuel marketers are making billions at the Expense of

To curb inflation, Nigeria must stop fuel subsidy – World Bank