Nigeria Sees 21.6% Foreign Portfolio Deficit Over Forex Scarcity

CBN Forex

Nigeria’s Foreign portfolio investments, FPI, have continued to slide as latest investment report indicates that the nation recorded about 21.6 per cent foreign portfolio investment deficit in January 2016.

FPI report for January 2016 released on Tuesday, March 9, by the Nigerian Stock Exchange (NSE) showed a deficit of 21.56 per cent between foreign inflow and outflow in January 2016, sustaining the same trend that had marked the 2015 business year.

Besides, the quantum of foreign investors’ transactions slowed down alongside a marked slowdown in the overall activities at the Nigerian equities market.

The FPI report showed that foreign inflow stood at N17.01 billion as against outflow of N26.36 billion, representing a deficit of N9.35 billion or 21.56 per cent during the period. Total foreign transactions thus stood at N43.37 billion. With the foreign sales on the high, foreign investors still accounted for the larger share of 51.57 per cent of transactions at the Nigerian stock market during the period.

Nigerian investors accounted for N40.73 billion or 48.43 per cent of the total turnover of N84.10 billion recorded during the period.

“Monthly foreign outflows outpaced inflows which was consistent with the same period in 2015,” the report stated. I

n December 2015, foreign inflow was N17.04 billion against outflow of N34.31 billion, representing a deficit of N17.27 billion.

In the comparable period of January 2015, foreign investors appeared less edgy and there were more appetite for Nigerian equities, although the tinge of deficit was also evident then.

Foreign inflow was N48.03 billion in January 2015 as against outflow of N51.08 billion. Total foreign transactions thus stood then at N99.11 billion or 52.24 per cent of total turnover of N189.72 billion during the period. Domestic investors had accounted for N90.61 billion or 47.76 per cent of total transactions.


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