Foreign investors & Nigeria's recovery plan

Nigeria's economic recovery plan has been met with mixed reactions locally, but what do foreign investors think about it? Ayo Salami, Chief Investment Officer for Africa at Duet Asset Management recently shared his perspective in an interview with CNBC Africa. Salami expressed his views on the recovery plan, highlighting both positive aspects and areas for improvement. While he found the broad objectives of the plan, such as restoring growth and building a competitive economy, to be attractive to foreign investors, he also pointed out a lack of detail regarding implementation. He emphasized the importance of clarity on timelines, targets, and measures to be achieved to instill confidence in investors. Salami also discussed the current political climate in Nigeria with President Buhari in London for medical treatment and Acting President Osinbajo overseeing affairs. While noting the cooperation between the two leaders on economic initiatives, Salami stressed the need for clear policy objectives to attract foreign investment. In terms of capital flows, Salami highlighted the competition Nigeria faces from other emerging markets like Vietnam and Pakistan, emphasizing the necessity for Nigeria to create an enabling environment for capital investment. He also discussed the outlook for Nigeria's equity markets, pointing out the challenges posed by high domestic interest rates and foreign investors' concerns about the exchange rate. Despite positive company results, the equity market remains under pressure until these macroeconomic headwinds are addressed.