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Despite ranking as the second-largest source of capital importation, the flow of portfolio investment into Nigeria decreased by 83,54 percent in the second quarter of this year to US$106,85 million from US$ 649,28 million.
This was disclosed in the National Bureau of Statistics’ most recent report, “Nigeria Capital Importation (Q2 2023), as seen in the Nigerian newspaper, The Punch.
The NBS report shows that the portfolio investment in Nigeria decreased by 85,89 percent year over year, with shares making $8,52 million, bonds making US$85,29 million, and money market instruments making US$13,04 billion. Quarter-over-quarter, the three goods had declined by 96,17 percent, 71,67 percent, and 89,64 percent, respectively.
Foreign investment in Nigeria has declined significantly since the outbreak of the COVID-19 pandemic in 2020, reflecting the pattern witnessed among other rising nations during the same era. Furthermore, the FTSE relegation of Nigeria to an unclassified market in early September exacerbated the problem, as investors fear that their assets may be stuck owing to the country’s difficulties with the foreign currency market.
President of Nigeria, Bola Tinubu said on the NASDAQ floor during the roadshow in New York that Nigeria is now open for investment.
“It is not about if Nigeria is open for business, it is about who wants to do business with Nigeria. Our administration has moved the exchange rate regime to a managed float and removed fuel subsidies. I call on you to come and invest in Nigeria,” he stated.
NGX Chief Executive Officer Temi Popoola indicated during the roadshow’s visit to the BBC in London that the NGX was ready to assist the FG in achieving its goal of expanding foreign investment. – Business Insider Africa
Bongani Ndlovu
Online Reporter