By Meletus EZE
The Buhari Media Organisation (BMO) has said that the increase in foreign portfolio investments in Nigeria in spite of uncertainties of an election season is a manifestation of investor’s confidence in the country’s economy.
The BMO said this in a statement signed by its Chairman, Niyi Akinsiju, and Secretary, Cassidy Madueke, on Tuesday in Abuja.
It said that from January to February 2019, Nigeria’s foreign portfolio investment recorded an unprecedented six billion dollars inflow, boosting the foreign reserves to sustain a five-month high currently at $43.547 billion.
This, the BMO said, was quite satisfying.
It also said that with sustained increase in the rise of foreign reserves and increased investors confidence in Nigeria’s economy, the Buhari administration had set a new precedence for fiscal and monetary discipline.
It said unlike the average five-month service capacity of Nigeria’s foreign reserves, the current volume had the capacity to service 16 months stretch of Forex demand “in a worst case scenario”.
The group said that though the major driver for the stability in foreign exchange market was the price of crude oil, the dramatic increase in the buy-out of Nigeria’s treasury bills and bonds had no doubt helped in boosting the reserves.
It said that President Muhammadu Buhari’s administration remained committed to increasing foreign reserves.
This, it said, was because the National Economic Council understood that creating the best case scenario for the Naira to appreciate further against the Dollar required a clinical approach to diversifying the inflow of foreign exchange revenue.
The BMO said the confidence in Nigeria’s economy was further underscored by a recent letter from the European Union which observed that President Buhari’s commitment to an inclusive government offered an opportunity to move Nigeria forward.
The letter, the BMO said, added that Buhari’s commitment met the objectives of strengthening the economy, fighting corruption and improving security, saying that what happened in Nigeria mattered to the rest of the world, including Europe.===NAN
