Nigeria’s equity market has witnessed a significant surge in foreign portfolio investments, with an impressive inflow of $222.3 million in the first quarter of 2023, News About Nigeria reports.
This staggering figure represents a remarkable 4,472% increase compared to the previous quarter as revealed by the National Bureau of Statistics (NBS) in its recently published Capital Importation report.
Nigeria had previously encountered difficulties in attracting foreign portfolio investments in its equity domain, with a mere $56 million making its way into the country.
Investors were hesitant to engage with Nigeria due to its stringent forex policies, which cast a shadow of uncertainty over the investment climate.
However, it seems that the successful conduct of the 2023 elections has played a pivotal role in rekindling investor interest and enticing them back to the country’s thriving equities market.
This lackluster performance was largely attributed to concerns over the country’s foreign exchange policies, which had deterred potential investors from engaging with Nigeria.
However, the tides seem to have turned following the successful conduct of the 2023 elections.
The positive outcome of the elections has played a pivotal role in instilling confidence in investors, enticing them back into Nigeria’s thriving equities market.
This surge in foreign portfolio investments signifies a promising boost to Nigeria’s financial landscape for the early months of this year.
The significant increase in funds flowing into the equity market is expected to contribute to the country’s economic growth and development, as well as create new opportunities for businesses and investors alike.