Nigeria foreign investment inflow crashes by 45%

Foreign Portfolio Investment (FPI) inflow, which represents foreign wealth pumped into Nigerian economy through the capital market, has reduced by 45 per cent from N42.46billion in June to N23.43billion in July.

This development came shortly after the revelation made by the Vice President, Yemi Osinbajo, that Foreign Direct Investment (FDI) inflow in the country took a nosedive of 56 per cent from $395million in first quarter of 2015 to $175million in first quarter of 2016.

According to the NSE report, total transactions at the nation’s bourse decreased by 42.13% from N155.85billion recorded in June 2016 to N90.19billion last month.

Also, total transactions at the nations’ bourse, comprising both local and foreign investment, up to July 2016 ending, decreased by 44.38% from N1.284trillion recorded within the same period in 2015 to stand at N714.60billion.

Meanwhile, domestic investors slightly outperformed their foreign counterparts by about 1.8% as trading of domestic resources decreased by 39.66% from N76.08billion the previous month to N45.91billion in July 2016.

In the same way, less investment arrived Nigeria from other countries, foreign outflows also reduced in July by 44.10% from N37.30billion in June to N20.85billion.

In comparison to the same period in 2015, total FPI transactions decreased by 54.99% from N696.46 billion to N313.49billion, while the total domestic transactions decreased by 31.83% from N588.36billion to N401.10billion.

The Nigerian capital market has continued to reflect the gloomy economic reality and bleak future expectations for the investing community.

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