The Central Bank of Nigeria (CBN) has disclosed that over 75 per cent of bids received during the auctions of government securities held on March 1 and 6, 2024, were from foreign investors.
This, the CBN said, is evidence of their growing interest in Nigeria’s financial instruments.
On March 1, the CBN carried out Open Market Operations auctions and successfully sold N1.06 trillion in bills.
The apex bank also conducted another round of Treasury Bills (T-Bills) auction on March 6, where it sold approximately N1.32 trillion.
According to a statement from the apex bank, there is an increased investor interest in short-term sovereign debt.
“Higher FX inflows continued in March 2024, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates. She noted that Government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75% of bids received at the auctions conducted on March 1 and 6, 2024,” The statement read.
The CBN also reported a significant rise in foreign inflows in February 2024.
“The Bank’s data indicates that overseas remittances rose to US$1.3 billion in February 2024, more than four times the US$300 million received in January.
“Foreign investors purchased more than US$1 billion of Nigerian assets last month, with total portfolio flows of at least US$2.3 billion recorded thus far in 2024 compared to US$ 3.9 billion seen in total for last year,” the statement added.
