Some foreign investors on Tuesday, March 9, hinted on the factors affecting investments in Nigeria, calling the federal government to address the level of insecurity in Nigeria and show concerns for the country’s foreign exchange rate.
According to them, Nigeria’s forex rate has been fluctuating over time with naira crashing repeatedly against the dollar.
The Netherlands Ambassador to Nigeria, Harry van Djik, who disclosed this in a statement when he paid a visit to the Minister of Industry, Trade and Investment, Adeniyi Adebayo, said the Nigerian government should address insecurity as this was a factor that had been affecting investment.
The statement read in part: “Djik who visited the minister to seek his consent on the revival of bilateral trade consultation between the two countries had wanted the government to address the issue of insecurity and foreign exchange for investors in the country.”
The ambassador also spoke on the need to revive the bilateral consultation between Nigeria and Netherlands, noting that the spread of the COVID-19 pandemic forced a postponement of further meetings.
Also speaking at during the meeting, Adebayo assured investors from the Netherlands that the Federal Government was addressing the issue of insecurity across the country.
Adebayo said President Muhammadu Buhari recently changed his service chiefs and took other security measures to assure Nigerians and the business community of his desire to ensure that the country was safe for all and sundry.
According to him, his ministry had set up a working group on the bilateral consultation between both countries and expressed hopes that before the end of the year, the meeting would be revived.
Adebayo told his guests that he had got a commitment from the governor of the Central Bank of Nigeria on the issue of forex, as a meeting on the matter would be held soon.
Earlier, Techeconomy.ng reported that the CBN had declared that offshore investors are free from participating in its regular sale of short-term bills via the Open Market Operations (OMO).
Meanwhile, the central bank had recently barred local investors from buying the liquidity management instrument. Domestic investors were not allowed to participate in the OMO sales, which had higher stop rates than the Nigerian Treasury Bills (NTBs), which had unattractive yields.
It was learnt that during the period, the attractive financial asset was only made available to foreign portfolio investors (FPIs) as part of moves to boost foreign exchange (FX) inflows into the country.
Another report, however, claimed last week that the banking regulator was planning to phase out the involvement of offshore traders in the OMO sales.
The report claimed that the director of monetary policy at the CBN, Hassan Mahmud, had said last Tuesday that offerings to non-residents of OMO bills would “ultimately” be phased ou