Foreign investors withdrew a total of N31.84 billion from the country last month as they continue to sell their interest in the Nigerian Stock Exchange, NSE.

According to a data from the NSE, foreign outflows during the period increased by 20.79 per cent from N26.36 billion in January 2016 to N31.84 billion, consistent with the trend in 2015.

On the contrary, foreign inflows decreased by 35.68 per cent from N17.01 billion in January 2016 to N10.94 billion in February 2016

Year-to-date, the total foreign investment outflow from the market stood at N58.20 billion, representing an increase of over N27.95 billion inflow within the same period.

Meanwhile, analysts at Ezcellon Capital have said that the decision by the Monetary Policy Committee of the Central Bank of Nigeria, CBN, to increase the benchmark rate from 11 per cent to 12 per cent and hike the Cash Reserve Ratio, CRR, for banks to 22.5 per cent from 20 per cent would not have anticipated impact in increasing foreign investment inflow into the country.

They observed that except a proper guidance was provided on the nation’s foreign exchange policy guidelines, investors would continue their “wait and look” stance on the Nigerian economy.

Source: Vanguard