Nigeria’s portfolio investment gains N223.4bn as domestic transactions rise

By Segun Odunewu, Lagos

The total portfolio investments rose by N223.4 billion between August and November 2020 with domestic transactions contributing about 78.82 per cent in the total portfolio transactions as at November 2020, while foreign transactions contributed 21.18 per cent for the period under review.

According to the latest domestic and foreign investments report released by the Nigerian Stock Exchange (NSE), total portfolio investment between January and November stood at N1.9 trillion, while between August and November 2020, foreign transactions increased by N28.33 billion.

Similarly, domestic transactions rose astronomically between the periods under review, from N55.47 billion to N250.50 billion, indicating a gain of 351.6 per cent. Compared to the months of October 2020, the performance of the current month indicates that total portfolio investments rose by N72.91 billion.

In 2019, total domestic transactions accounted for about 51 per cent of the total transactions carried out, whilst foreign transactions accounted for about 49 per cent of the total transactions in the same period.

A long-run analysis of the Nigerian total portfolio investment demand showed that foreign transactions outgrew local transactions, indicating that Nigeria stocks are highly competitive and demanded more by foreign nationals, whereas a short-run analysis proved otherwise.