Foreign investment in the Nigerian Exchange Limited (NGX) plummeted to N11.26 billion in September, marking the lowest point this year, according to the NGX’s Domestic & Foreign Portfolio Investment Report ¹. This decline was accompanied by a significant increase in foreign investors liquidating their investments between August and September.
Total foreign inflow into Nigeria for the first nine months of 2024 reached N310.99 billion, surpassing the N108.93 billion recorded in 2023. The peak inflow of N54.87 billion occurred in May 2024, followed by a steady decline to N11.26 billion in September.
The unstable naira and high interest rates are driving investors away from the equity market in search of better yields. In September, foreign outflow worsened to N30.15 billion from N24.38 billion in August.
The Central Bank of Nigeria’s tightening of interest rates to combat inflation has contributed to this trend. With inflation reaching 33.88% in October, experts predict another rate hike at the next Monetary Policy Committee meeting.
Despite this, total transactions at the NGX increased by 29.90% from N379.52 billion in August 2024 to N493.01 billion in September 2024. Domestic investors outperformed foreign investors by 84%, with retail transactions increasing by 59.42% from N180.72 billion in August 2024 to N288.10 billion in September 2024 ¹.
