The Democratic Front (TDF) has hailed the influx of Foreign Portfolio Investments (FPIs) of nearly N600bn into the country as a welcome development saying this was made possible through the inventive monetary policy of the President Bola Tinubu administration.
In a statement signed by its Chairman, Mallam Danjuma Muhammad and Secretary, Chief Wale Adedayo, the group said reports of a 200% increase in FPI from N185bn in July 2023N598bn is worth celebrating.
“We are happy to celebrate the breakthrough recorded in the inflow of Foreign Portfolio Investments (FPI) to the tune of N598 billion in July 2024.
“TDF is particularly elated by this tremendous leap in FPI, because of the low and uninspiring level of Foreign Portfolio Investments which dropped to 4 percent in April 2023, shortly before the commencement of major economic policy pronouncements by the President Bola Ahmed Tinubu led administration in May 2023.
“It is greatly pleasant to note that the current increase of more than 200 per cent increase in FPI, which represents the highest inflow size in five years, is the outcome of the Central Bank’s aggressive interest rate regime ramping up Monetary Policy Rate by an unprecedented 600 basis points to 24.75 percent within two months of February and March this year.
“We commend the avid commitment of President Bola Tinubu to his government’s economic policies and reforms, which have made Nigeria’s money market one of the most attractive to Foreign Portfolio Investments globally, and also positioned the country as the potential Mecca for Foreign Direct Investments in the foreseeable future.
“Similarly, we commend the CBN for launching a slew of policy actions in the FX market, which include the harmonization of the reporting requirements on foreign currency exposures of banks, clamping down on cryptocurrency platforms (Binance), and the clearance of all valid foreign exchange backlog to clean up the forex market. There is no doubt that these measures have boosted investors’ confidence in the Nigerian economy.
“The astronomical surge in the inflow of FPIs should serve as further encouragement to President Tinubu whose objective of a $1 trillion economy is becoming increasingly realizable within the framework of his government’s economic reforms and infrastructural development.
“On this significant premise, we urge Nigerians to continue to show understanding and support for the President, because the meteoric rise in FPIs is expected to bring multi-dimensional benefits through increased liquidity, boost to stock capital, improved market sentiment, foreign exchange inflows, reduced cost of capital and increased competitiveness amongst others.
“We admit the need to stress further that peace and political stability are the irreducible minimum conditions for economic growth and prosperity all over the world so President Bola Tinubu must be supported, for Nigeria to succeed,” it added.
