Billionaire businessman and Chairman of First HoldCo Plc, Femi Otedola, has backed the Federal Government’s economic reforms, pointing to rising foreign reserves, gains in the Nigerian equities market and renewed international recognition of Nigerian companies as indicators of improving economic conditions.
Otedola made the remarks on Tuesday following a private dinner with President Bola Tinubu in Paris, France, where the President had been spending part of his working vacation.
The businessman said the administration’s reforms had placed the economy on what he described as a sustainable growth path, citing developments across the foreign exchange and capital markets to support his position.
Among the indicators highlighted by Otedola was Nigeria’s return to the FTSE Russell Frontier Market classification and the inclusion of major Nigerian companies in the FTSE Russell Frontier 50 Index.
He also pointed to the performance of the Nigerian Exchange, increased foreign direct investment and improved confidence among investors.
Nigeria returned to FTSE Russell’s Frontier Market status in September after previously being moved to an unclassified market status, restoring the country to indices tracked by international investors.
First HoldCo, where Otedola serves as chairman and is the largest shareholder, was among six Nigerian companies included in the FTSE Frontier 50 Index effective September 21.
Otedola also highlighted developments in Nigeria’s foreign exchange market and the country’s external reserves, which he said had risen to approximately $55 billion.
The Central Bank of Nigeria has pursued reforms aimed at creating a more market-driven foreign exchange system after years of multiple exchange rates and persistent dollar shortages.
According to Otedola, the combination of stronger reserves, greater stability in the foreign exchange market and developments in the capital market has contributed to renewed economic confidence.
His assessment represents the view of one of Nigeria’s largest private-sector investors at a time when the economic impact of the government’s reforms remains a subject of debate.
While capital-market performance, external reserves and foreign-exchange conditions have improved on several measures, households continue to face pressure from living costs and food prices. Analysts and labour groups have argued that improvements in headline macroeconomic indicators have yet to translate fully into relief for household finances.
Tinubu Meets Business Leaders in France
Otedola’s meeting formed part of a series of engagements involving Tinubu during his stay in France.
The Presidency said the President also met French President Emmanuel Macron and businessman Vincent Bolloré, whose business interests include media and digital assets associated with Canal+, MultiChoice and Universal Music Group.
Tinubu also witnessed the signing of a memorandum of understanding between the Ogun State Government and DP World for the proposed Gateway Deep Seaport and Blue Marine Economic Zone in Ogun Waterside.
DP World plans investments estimated at $7 billion for the seaport and associated economic zone, according to the Presidency.
The President departed Paris for Nigeria on Tuesday after ending his working vacation and is expected to arrive in Lagos before proceeding with scheduled engagements.
For Otedola, the recent improvement in market indicators provides evidence that the economic adjustments are beginning to produce results, although the broader test will remain whether improvements in financial-market and macroeconomic indicators translate into sustained investment, employment and stronger household purchasing power.