INVESTORS will require the Central Bank of Nigeria (CBN) to come clean on debt obligations and outstanding backlogs of debts owed to grow investor’s confidence in the economy, one of Nigeria’s leading economists, Bismarck Rewane, has said.
The ICIR reports that the Nigerian economy has been bleeding in all its sectors, and the poor state of the economy, occasioned by the government’s policies, has worsened.
The CBN has confirmed clearing the outstanding forex backlog it had verified.
However, investors are seeking clarity on the way forward should such concern arise again from the business and investment community, Rewane, the Chief Executive Officer of the Financial Derivatives financial firm which consults for both local and international organisations, said.
He explained that this would serve as a guide for investors seeking to invest in the country.
“I think the first step the governor of the Central Bank Governor took was his briefing on the verified debts and clearance of the foreign exchange backlogs.
“This is a good development. However, investors are looking at whether the apex bank can meet future obligations if you enter them,” he said.
Rewane stressed that Nigeria needed to assure investors of its ability to meet future debt obligations and financial commitments.
“The question remains that in the face of declining oil revenues and commodity prices, will Nigeria be ready to meet its immediate obligations? Second, will it meet up with commitments that will mature in the near term?”
He further harped on transparent institutional reforms to build investors’ confidence and get their assurances.
“There’s a shortfall on production targets in oil because we have backlogs and commitments. We also borrowed some money from the African Development Bank, and 90,000 barrels of oil were pledged.
He further said that given the state of the country, it needed the intervention of the International Monetary Fund (IMF) to encourage investors’ confidence.
“It will attract potential investors, debt holders, bondholders, and rating agencies. Once you do all these things, you discover that new Investments will begin to come in to consolidate the growth part and trajectory of this economy.”
