The Central Bank of Nigeria (CBN) has disclosed that over 75% of bids received during the auctions of government securities held on March 1 and 6, 2024, were from foreign investors, showcasing their growing interest in Nigeria’s financial instruments.
TheWitness earlier reported that on March 1, 2024, the CBN carried out Open Market Operations (OMO) auctions, successfully selling N1.06 trillion in bills.
Following this, the apex bank conducted another round of Treasury Bills (T-Bills) auction on March 6, 2024, where it offloaded about N1.32 trillion.
These auctions not only signify a robust demand for Nigerian debt but also highlight the increasing confidence of foreign investors in the Nigerian economy.
According to a statement from the apex bank on Thursday, there is an increased investor interest in short-term sovereign debt.
Nigeria gets $2.3 billion foreign inflow in two months
The CBN also reported a significant rise in foreign inflows in February 2024, driven by higher remittance payments from Nigerians living abroad and a spike in the purchase of naira assets by foreign portfolio investors.
Mrs. Hakama Sidi Ali, the Bank’s Acting Director of Corporate Communications, disclosed in a press briefing in Abuja that overseas remittances reached $1.3 billion in February, a substantial increase from $300 million in January.
Furthermore, foreign investors purchased over $1 billion of Nigerian assets last month, with the total portfolio flows for the early part of 2024 reaching at least $2.3 billion, compared to the $3.9 billion recorded for the entirety of last year.
The surge in foreign exchange inflows has continued into March 2024, attributed to the recent adjustments in benchmark interest rates which have heightened investor interest in short-term sovereign debt.
According to the statement, Sidi Ali said:
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