- Nigeria recorded the lowest inflows of Foreign Portfolio Investment (FPI) since 2013 for the 11 months to November at N189.42 billion.
- The hope of many Nigerian stocks to gain value through patronage from overseas investors failed to materialise in 2021.
- The volume of trade declined to their levels before the pandemic.
Nigeria recorded the lowest inflows of Foreign Portfolio Investment (FPI) since 2013 for the 11 months to November at N189.42 billion. The hope of many Nigerian stocks to gain value through patronage from overseas investors failed to materialise in 2021. The volume of trade declined to their levels before the pandemic.
Nigeria’s foreign exchange earnings largely depend on Oil. Since April 2020 crude prices plunged as a result of global Covid-19 lockdowns impacting the economy and leading to foreign exchange scarcity. This in turn created uncertainty around the ease of converting investment into the foreign currency at will.
The projection for December of FPI is not likely to improve. Since 2019, foreign inflows have been narrowing. During the first eleven months of last year, it accounted for only 22.93 per cent of the total investment and analysts have stated that the outlook for 2022 will be gloomier. One reason for the outlook is 2022 is a pre-election year and there will be more volatility and less participation from foreign investors.
