Portfolio investment into Nigeria fell by 83.54 percent in the second quarter of this year, to $106.85 million from $ 649.28 million in the first quarter, although remaining the second largest source of capital importation.
The Punch reported that this was disclosed in the National Bureau of Statistics’ most recent report, “Nigeria Capital Importation (Q2 2023).”
The NBS reports that portfolio investment decreased by 85.89% year over year, with shares making $8.52 million, bonds making $85.29 million, and money market instruments making $13.04 billion. Quarter-over-quarter, the three goods had declined by 96.17%, 71.67%, and 89.64%, respectively.
A few weeks ago, the Nigerian Exchange Limited worked with the Debt Management Office and additional partners embarked on a non-deal road show to stir foreign investors’ interest in Nigeria.
Foreign investment in Nigeria has significantly decreased since the COVID-19 epidemic began in 2020, following the trend seen in other rising economies over the same time period.
Additionally, the situation was made worse by FTSE’s downgrading of Nigeria to an unclassified market at the beginning of September. This is because investors now worry that their money may become stuck because of problems with the country’s foreign currency system.
Nigeria is officially open for investment, according to President Bola Tinubu, who made the announcement on the NASDAQ floor during the roadshow in New York.
He remarked, “Who wants to conduct business with Nigeria is what matters, not whether Nigeria is open for business. The exchange rate system has been changed by our administration to a managed float, and removed fuel subsidy. I call on you to come and invest in Nigeria.”
NGX’s Chief Executive Officer, Temi Popoola, declared that the company was ready to assist the FG in achieving its goal of expanding foreign investment during the roadshow’s stop at BBC in London.
“What we want to do is make it plain to investors that Nigeria is open for business and to reaffirm that the scale of the problems is obvious and that efforts are underway to resolve them all.”
