Foreign investments in Nigeria’s stock market saw a huge 204% rise in the second quarter of 2024, totaling $150 million, according to numbers from the National Bureau of Statistics (NBS).
This big jump, which is a 1,660% increase compared to the $8.5 million in the same period of 2023, is due to the high returns and changes made by the Central Bank of Nigeria (CBN).
The NBS data also showed that Foreign Portfolio Investment (FPI) in Nigeria was $1.4 billion in the second quarter of 2024, even though it dropped by 32% from $2.08 billion in the first quarter.
In the first six months of 2024, foreign portfolio investments in Nigeria reached $3.48 billion, which is a 360% increase from $756.1 million in the same period of 2023.
Analysts say this growth is because of the CBN’s efforts to bring in more foreign money, better supply of foreign currency, and the high returns available.
“The high interest rates have made Nigeria a good place for foreign investors to put their money,” said Samuel Oyekanmi, who studies investments at Norrenberger.
Matilda Adefalujo, who works with banks at Meristem Nigeria, added that the banking sector’s changes also helped the growth.
The numbers from the NBS show that about 77% ($2.68 billion) of the foreign money in Nigeria went into things like treasury bills, OMO bills, and commercial papers.
The increase in foreign money is expected to make investors more confident and help Nigeria’s economy grow.
