ENHANCED FOREIGN EXCHANGE LIQUIDITY WILL ENSURE INVESTMENTS – YINKERE

The stability of a nation's foreign exchange market is a primary draw for investors. The interview with Pabina Yinkere, Business Head, Asset Management at Norrenberger Financial Group, emphasizes the need for the Central Bank of Nigeria to step up efforts to clear currency backlogs.

Do you think that the market's volatility and the unification of the forex would have an impact on investment prospects in Nigeria？

The Nigerian FX market has long been in need of reform in order to promote price discovery and liquidity. Every economy needs a liquid and transparent Forex market in order to form capital and prosper economically. Regretfully, Nigeria experienced a severe FX crisis a few years ago, which stunted economic expansion and undermined investor confidence. The CBN stated on June 8, 2023, that all Forex windows would merge into NAFEM (formerly NAFEX) and that the hard peg on Naira trading on the official market would be lifted. This move caused the value of the currency to fall by 40%.

Markets development because it supported high investor expectations and sparked the stock market's bull run. But the reality in the Forex market that followed stoked more depreciation, widened the difference between official and parallel rates confidence. Investors would be wary of making investments in Nigeria as long as there is uncertainty in the foreign exchange market and an excess of unfulfilled backlogs. Although the CBN's recent efforts to reduce backlogs are commendable, we think investors would want to see increased Forex liquidity and favorable market signals before fully accepting Nigeria as the attractive investment destination that it once was.

In what way would you evaluate Nigerian investment opportunities？

Nigeria is still a possible sanctuary for investments. Nigeria is a desirable economy and investment opportunity due to its robust and youthful population, diverse economy, and plenty of unexplored natural resources. Since many of the nation's industries are still in their infancy, there is potential for significant growth. Nigeria has enormous investment potential, as evidenced by the country's per capita consumption of so many goods. Though there are still some obstacles to overcome before realizing this enticing potential, the Nigerian capital market is well-positioned to support this growth.

How would you go about finding out how Norrenberger Financial Group performed in 2023？

2023 was a turning point in Norrenberger's life. To further our development goals, the Group announced in March that it had acquired a 60% share in The Infrastructure Bank (TIB). Our key principles, FIRST—friendliness, innovation, responsiveness, simplicity, and trust—were validated in September when we were awarded the esteemed Great Place To Work (GPTW) certification. These characteristics are ingrained in the Norrenberger culture. We successfully introduced the Norrenberger Turbo Fund (NTF) in November, a fixed income fund designed to give investors competitive returns in the fixed income space.

We established the Norrenberger Entrepreneurship Fund (NEF) in December to celebrate our fifth anniversary. The fund's goal is to provide young corpers with the tools they need to become ambitious entrepreneurs. With the Norrenberger Dollar Fund (NDF) and the Norrenberger Islamic Fund (NIF), two of the market's fastest-growing mutual funds, we made significant progress during the year. Our mutual funds performed well, ranking in the top quartile and among the best yielding in their respective categories. Overall, we improved our standing as one of the top 15 mutual fund managers in the business, and in 2023, our total assets under management (AUM) increased by 60%. This demonstrates the faith, confidence, and acceptance of the Norrenberger brand among our clients.

Given the formidable competition in the market, what unique actions have you taken to solidify your position in the financial industry？

At Norrenberger, we have deliberately created investment options across various asset classes to ensure that we give our clients the best options to diversify their investments – whether we are talking about low-risk money market exposures, higher yielding fixed income investments, investment in stocks, alternative asset exposure or hedging against currency risk and inflation with foreign currency denominated investment options. With our selection of investment products that offer competitive yields, we can put together a portfolio that works for you.

In what ways, in your opinion, can Nigeria improve the investment climate and draw in both foreign and domestic capital？

Macroeconomic stability should, in my opinion, be the primary priority. The government must articulate the short-, medium-, and long-term requirements for reaching this objective, as well as establish a clear vision for where it wants to take Nigeria. To boost investor confidence, the high rate of inflation and the currency problems need to be addressed.

Effective and consistent policymaking, effective capital allocation between the public and private sectors, well-established governance at all levels, protection of people's lives and property, and the development of human capital are all necessary. It also doesn't need to be flawless. You will undoubtedly attract investments and open up the economy once we begin checking some of these boxes.

By 2025, Norrenberger wants to provide financial solutions for every home. How are you going to accomplish that？

Norrenberger has and will continue to proactively diversify its service offerings throughout a number of financial market categories. As an integrated financial services firm, Norrenberger offers customized financial solutions that benefit our clients. Including asset management, private equity, development finance, investment banking, securities trading, pensions, insurance, fintech, and digital banking, Norrenberger has a team of skilled specialists that work for them.

Clients are being listened to by us. What goals do they have？ What dreams do they have？ What requirements do they have？ This helps us comprehend the psychology of Nigerians with regard to their financial requirements. We then use this information to launch our “think tank” in order to provide ideas for how to address these issues.