Foreign portfolio investment (FPI) inflows into Nigeria’s stock market surged by 167.8 percent Year-on-Year (YoY) to N118.92 billion in February 2024 from N44.52 billion in the same period of 2023. This increase was fueled by enhanced liquidity in the foreign exchange (FX) market, following reforms by the Central Bank of Nigeria (CBN).
According to the Nigerian Exchange Limited (NGX) Domestic and Foreign Portfolio Investment report for February 2024, FPI accounted for 11.78 percent of the total equities transaction volume of N1.009 trillion during the period, marking a 0.3 percentage point rise.
Month-on-Month (MoM), foreign investors’ stake grew by 23.9 percent to N65.81 billion in February from N53.11 billion in January 2024. Additionally, their contribution to total equities transactions increased to 18.39 percent from 8.15 percent between January and February 2024.
The Year-to-Date (YtD) FPI inflow stood at N40.71 billion, constituting 37.9 percent of the total foreign investors’ commitment, while outflows amounted to N78.21 billion, representing 62.1 percent of foreign portfolio investment.
Oluwaseun Dosumu, Head of Research at Parthian Securities, commented, “The resurgence of foreign investors in the Nigerian market depends on the policies and dynamics of the foreign exchange market in 2024. With expectations of improved supply during the year, there is potential for a modest increase in foreign portfolio investment in the Nigerian Exchange.”
