The reforms in forex market significantly improved valuation transparency in companies that enabled more foreign investors to invest in the economy, the President, Association of Issuing Houses of Nigeria, ‘Kemi Awodein, has said.
She spoke on Thursday, during the AIHN Annual General Meeting, in Lagos.
The AGM provided opportunity for the AIHN executives and members to receive the association’s audited financial statements for the year ended December 31, 2023, together with reports of directors and auditors, re-appoint auditors, authorise the directors to fix renumeration of auditors, and elect Taiwo Olatunji as the Secretary of Treasury.
The account statement showed the association recorded N86.56m income in 2023 financial year, an improvement from N85.41m it achieved in the corresponding period of 2022.
All the executive committee members – Dr Gbadebo Adenrele (Vice President), Alhassan Gwarzo (Secretary of Finance), Abimbola Kasim (former Secretary of Treasury), Mrs. Onyebuchim Obiyemi (Secretary of Administration), and Chidi Iwuchukwu (Secretary of Publicity) – were present.
Awodein explained that the several successful transactions facilitated within the year, including Heineken’s $24bn acquisition of a controlling stake in Nigerian Breweries and Sahara Group’s $1bn purchase of Eabin Power, were boosted by the Forex reforms.
“These deals were facilitated by the restructuring of the FX market, which improved valuation transparency for foreign investors,” she said.
Awodein said the ongoing recapitalisation of banks, “has also supported growth in the equities market, which is a good development for the economy.”
She said that in 2023, the Nigerian investment banking sector saw significant developments influenced by key economic reforms, particularly the removal of fuel subsidies and the unification of the exchange rate.
These reforms had a profound impact on the overall financial landscape, enhancing foreign investor confidence and increasing liquidity in the market. These reforms, alongside broader macroeconomic adjustments, have shaped investment banking strategies, enabling new opportunities in capital raising and mergers and acquisition activities.
“The prominent transactions are Seplat Energy’s $650m bond issuance, aimed at expanding its energy operations, and Airtel Africa’s $500m capital raise, which was used to enhance telecommunications infrastructure. These initiatives were made more feasible by the improved economic environment following the reforms,” the AIHN president said.
