A recent report titled “Finding Rain in Drought.” by Comercio Partners, a prominent research and investment firm, suggests that foreign investors might delay investing in Nigeria due to the ongoing forex crisis.
The report highlights the forex backlog and external challenges amid global economic uncertainties as significant factors contributing to the prevailing uncertainty in Nigeria’s economic outlook. It cautions that the growing forex backlog poses a risk of increased pressure on the exchange rate, which could have implications for investors.
The report notes that both local and foreign investors are adopting cautious approaches in response to the potential impact of currency devaluation on investment returns. Local investors are wary of the risks associated with currency devaluation, while foreign investors may opt to observe from the sidelines, exercising prudence as they navigate the economic environment.
Source: PUNCH