| …Worst for growth cycle and Naira appears behind, says analysts
Positive sentiment toward Nigeria is continuing to grow.
Nick Ndiritu, a portfolio manager for South Africa-based fund manager Allan Gray, told Wall Street Journal this week that Nigeria may have recently passed the “point of maximum pessimism” and be set for a recovery in investor sentiment.
Ndiritu, whose equity and bond funds invest across a range of countries in Africa, believes Nigeria may present the best prospect for investors as the risk of another currency devaluation recedes and foreign investment returns.
Noting that Nigeria’s recent return to running a trade surplus could help drive much needed dollar liquidity in the country, Chris Becker, a researcher at Investec Bank in South Africa, said: “We remain optimistic that the worst for the business cycle and naira may be behind us, and look forward to a growth recovery in the next few years.” |
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| Investors are jumping on board, driving the benchmark stock index up another 6% this week to reach a two-year high of 33,277. The market has now gained 24% this year and is up 35% from its early-March low.
Nigeria’s people don’t exactly feel psyched about their economy. According to a Pew survey released this week, just four in 10 Nigerians feel good about their country’s economy, down from almost 60% in 2015.
Even so, almost three quarters of those surveyed expect their children to be better off than they are.
The data also highlight the sharp differences between African nations. Almost three quarters of Senegalese feel good about their economy, although only around half believe their children will be better off.
By Dan Keeler, Frontier markets, Wall Street Journal |
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Dan Keeler
Nigeria's leading finance and market intelligence news report. Also home to expert opinion and commentary on politics, sports, lifestyle, and more
