Akaraiwe: CBN Monetary Policies Must Prioritize FDI over Portfolio Investment

Kayode Tokede

The Chief Executive Officer, Graeme Blaque Advisory, Mr. Zeal Akaraiwe has expressed that the Central Bank of Nigeria (CBN) monetary policies must prioritize Foreign Direct Investment (FDI) over portfolio investment targeted at its purpose of achieving infrastructural development and employment opportunities.

Akaraiwe who was speaking recently at a webinar hosted by Nairametrics tagged, “Economic Recap of the Current Administration’s First 100 Days,” said FDI structured investment into the economy, stressing that it brings employment opportunity, the creation of value.

According to him, “When a company comes and builds a $300billion plant in Nigeria, the plant will work, and operate. You will see the effect on the economy.”

Akaraiwe urged the new CBN governor, Dr. Olayemi Cardoso to ensure a calculated monetary policy that is centred around transparency as well as confidence in the market.

According to him, no investor, whether local or foreign, will infuse capital into a system that lacks liquidity and trust.

“The key thing we need to highlight is that investment in general will be direct to two or three factors. One, confidence in the economy is driven by policies. Two is liquidity. Basically, if I bring money into the economy, the one question is can I get my money back?

“If that answer is not an unequivocal yes, then confidence will begin to deplete. As confidence depletes, inflows from investors have to go down. The value of the currency starts to depreciate. But beyond the foreign investment figures, we need to pay attention to net flow into the economy,” he said.

Speaking, the MD/CEO, KSBC Advisory Partners Ltd/Arise Business Analyst, Chika Mbonu said it is imperative for the federal government to address current challenges to bolster the nation’s oil production.

According to him, addressing current subsidy and foreign exchange challenges vital to streamline and fortify the nation’s public finance, encompassing both revenue generation and expenditure management.