Nigeria attracts $2bn inflows in 2024 as reforms yield fruit – Cardoso

…Big OMO auction to hold Friday

Olayemi Cardoso, the governor of Nigeria’s central bank, said during an investor call on Thursday that the country attracted $2 billion in foreign portfolio inflows in 2024 alone, a sign of renewed investor confidence in the apex bank’s foreign exchange market reforms.

Nigeria attracted a total of $3 billion in foreign portfolio inflows in the whole of 2023. The National Bureau of Statistics (NBS) which publishes data on foreign investment inflows is yet to release data on inflows for the first quarter of 2024.

Cardoso, in the meeting facilitated by the Nigerian Exchange Group with foreign investors, also said the CBN has cleared all verified dollar backlogs of all banks except five.

The CBN governor also said there will be an OMO auction tomorrow, Friday.

The CBN plans to increase the size and frequency of OMO, according to Cardoso who added that by raising the Cash Reserve Requirement (CRR) the apex bank plans to mop up some N5 trillion.

Treasury Bill rates will also increase at the next auction, according to the bank’s Deputy governor.

The deputy governor also said the aim is to achieve positive real rates over time.

The CBN estimates that inflation will moderate in the medium term to 21.4%.

Details later…