Nigeria: investors pull out N58 billion between January, February

Over N58.20 billion is said to have been pulled out of the Nigerian economy by investors between January and February this year as against the foreign inflow of N27.95 billion in the same period.

The FPI report, which is coordinated by the Nigerian Stock Exchange, NSE, showed that they invested N115.22 billion into the nation’s economy, representing 57.22 per cent of the total transactions during the period.

In the period under review, the monthly analysis showed that FP outflow was N31.84 billion while inflow stood at N10.94 billion. In the same period last year, foreign outflow was N81.60 billion while inflow was N52.35 billion.

The FPI January report indicated that foreign inflow was N17.01 billion as against outflow of N26.36 billion, representing a deficit of N9.35 billion.

Further analysis of the FPI/ NSE for the period of January showed that foreign investors had more appetite for Nigerian equities as suggested by the foreign inflow which was N48.03 billion in January 2015 as against outflow of N51.08 billion.

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For the January period of 2015, the FPI stated that total foreign transactions was N99.11 billion or 52.24 per cent of total turnover of N189.72 billion while domestic investors accounted for N90.61 billion or 47.76 per cent of total transactions.

During the same review period, FPI observed that total foreign transactions were N43.37 billion while Nigerian investors accounted for N40.73 billion or 48.43 per cent of the total turnover of N84.10 billion.

Previous report of 2013 and 2014 showed that the 12-month foreign portfolio investment report for 2014 indicated that foreign portfolio outflow was N846.53 billion as against inflow of N692.39 billion in 2014, representing a net deficit of N154.14 billion.

Also in 2013, total foreign inflow was N531.26 trillion compared with outflow of N510.78 trillion, leaving a positive balance of N20.48 billion. The NSE stated: “The downturn from 2015 has already continued into the New Year. Accordingly, we anticipate 2016 to be a challenging year for the capital market and the domestic economy.”