Foreign Portfolio Investments (FPIs) on the Nigerian Exchange Limited (NGX) have surged to a record high, reaching a total transaction value of N744.34 billion in the first ten months of 2024 (10M’24).
This represents the highest figure since 2018, driven by significant reforms in Nigeria’s foreign exchange market.
According to NGX’s latest report, inflows from FPIs increased by 180.9% to N344.3 billion in 2024, while outflows rose by 136.9% to N400 billion compared to N168.8 billion in 2023.
The growth is attributed to the Central Bank of Nigeria’s (CBN) reforms, including the floatation of the exchange rate and aggressive monetary policy adjustments to stabilize the naira and curb inflation.
Domestic investors, however, maintained dominance in the market, accounting for 82% of total transactions, with a transaction value of N3726.63 trillion in 10M’24, compared to N264.2 trillion in 10M’23.
Experts like Victor Chiazor of FSL Securities and David Adnori of HighCap Securities highlighted that the depreciating naira has made Nigerian stocks attractive to foreign investors, boosting FPIs.
This trend underscores the gradual return of foreign investors to Nigeria, reflecting confidence in ongoing economic reforms.
For more updates, stay tuned to NIGPOST.
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