Nigeria, among other African countries, stands out as a potential recipient of increased foreign investment due to a significant decline in its currency this year, as indicated by Citigroup Inc. George Asante, Citi’s head of markets for Sub-Saharan Africa, emphasized that nations experiencing notable FX adjustments are well-positioned from an investment standpoint. Nigeria’s naira has seen the most substantial depreciation against the dollar this year, dropping over 40%, driven by measures to address fiscal challenges, including the elimination of fuel subsidies and a revamp of the criticized exchange-rate system. Nigerian President Bola Tinubu aims to revitalize the economy by redirecting funds saved from subsidies into health services, education, and job opportunities. The central bank’s overhaul of exchange-rate policies in June has also contributed to the naira’s devaluation. The removal of subsidies is regarded as a crucial reform, and efforts to consolidate exchange rates are expected to enhance liquidity, according to Asante. He believes these changes will significantly stimulate investment inflows into the Nigerian market. Additionally, the prospects for eurobond issuance by African nations are discussed, with Ivory Coast and Senegal noted as attractive options due to their sustained economic growth, fiscal responsibility, and favorable debt service costs. As the coronavirus pandemic’s impact lessens, African countries, including Nigeria, are seeking infrastructure financing, particularly for energy, food-related projects, and long-term investments in critical sectors like transportation and healthcare. The shift in funding sources is highlighted, with reduced Chinese financing and an uptick in Western financing observed. Among African nations, Nigeria remains one of the countries with financial flexibility to pursue infrastructure funding.Thank you for reading this post, don't forget to subscribe!