Key questions this article answers:
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The capital market has welcomed bold reforms taken under the Tinubu administration to remove subsidies and unify the exchange rate. Would this be enough to sway foreign investors?
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What else can the new administration do to bolster confidence in the Nigerian economy and improve investment flows?
A couple of months ago, I explored the impact of a Tinubu presidency on the Nigerian financial market, followed by a review of the Nigerian equities market in the first quarter and an outlook for the year's second quarter.
In both articles, I predicted a positive market performance premised on sustained domestic investor participation, especially in the Nigerian equities market (a.k.a; the NGX). This outlook held out in Q1 2023, and following the election of now-President Bola Tinubu and a drop in Nigeria’s Purchasing Manager’s Index (PMI), I became cautiously optimistic about the NGX’s positive performance in Q2 2023.
