The flow of portfolio investment into Nigeria declined by 83.54 per cent in the second quarter of this year to $106.85m from $ 649.28m in the first quarter even as it ranked the second top source of capital importation.
This was revealed in the latest report of the National Bureau of Statistics titled ‘Nigeria Capital Importation (Q2 2023)’.
According to the NBS, portfolio investment dipped by 85.89 per cent year-on-year with equity contributing $8.52m, bonds contributing $85.29m and money market instruments bringing in $13.04bn. The three items had depreciated by 96.17 per cent, 71.67 per cent and 89.64 per cent respectively quarter-on-quarter.
Weeks back the Nigerian Exchange Limited in collaboration with the Debt Management Office and other partners had embarked on a non-deal road show to stir foreign investors’ interest in Nigeria.
Since the onset of the COVID-19 pandemic in 2020, foreign investment in Nigeria has experienced a significant decline, mirroring the trend observed in other emerging economies during the same period. Also, the downgrade of Nigeria to an unclassified market by FTSE in early September worsened the situation, as investors fear that their funds may be trapped due to the challenges with the foreign exchange market in the country.
On the floor of NASDAQ during the roadshow in New York, President Bola Tinubu declared that Nigeria is now open for investment.
He said, “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 subsidy. I call on you to come and invest in Nigeria.”
The Chief Executive Officer, NGX, Temi Popoola, during the roadshow’s stop at BBC in London, stated that the NGX was prepared to help the FG achieve its aim of increasing foreign investment.
“What we are trying to achieve is to emphasise to investors that Nigeria is open for business and also reinforce that the enormity of the challenges is clear and work has begun to address all the issues.