Portfolio investment movement dropped by 83.54% in Q2 – NBS
By Felicia Nwosu
A latest report made available by the National Bureau of Statistics (NBS) has shown that the movement of portfolio investment into Nigeria witnessed a fall in dropped by 83.54 per cent in the second quarter of this year to $106.85m. NBS data revealed that it was formerly $ 649.28m in the first quarter even as it ranked the second top source of capital importation.
The report titled ‘Nigeria Capital Importation (Q2 2023)’ stated that 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.
It pointed out the three items had depreciated by 96.17 per cent, 71.67 per cent and 89.64 per cent respectively quarter-on-quarter.
Recall that recently, 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.
Reaffirming the adverse impact of the COVID-19 pandemic in 2020, whose negative implication affected foreign investment in Nigeria with a decline which lingered across other emerging economies during the same period.
Another driving factor was attributed to the downgrade of Nigeria to an unclassified market by FTSE in early September which also led to its fall, as investors fear that their funds may be trapped due to the challenges with the foreign exchange market in the country.
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