Foreign Investment Inflows Drop By N28.57bn

Nigeria’s foreign investment inflow was N28.57bn lower than the foreign investment outflows as of the end of the first half of 2019.

The Central Bank of Nigeria disclosed in its half- year report on market turnover that this was attributable to the uncertainties that surrounded the last elections in the country.

Part of the report read, “The financial services sector remained dominant in the first half of 2019, accounting for 76.39 per cent of the volume of equities traded, followed by the conglomerates with 6.65 per cent, while the remaining sectors accounted for 16.96 per cent.

“Foreign investment inflow amounted to N221.61bn, while outflow was N250.18bn at the end of June 2019, reflecting a net outflow of N28.57bn.”

According to the report, foreign investment inflows amounted to N380.65bn, while outflows amounted to N419.06bn, reflecting a net outflow of N38.41bn in the first half of 2018.

It explained that the net outflow during the review period was attributable to the uncertainties surrounding leadership changes expected to follow the general elections.

At the end of June 2019, the total foreign portfolio investment in the stock market was 43.38 per cent of total market transactions, compared with 50.07 per cent in the corresponding period of 2018, it added.

The CBN stated that policy measures by the various regulatory authorities, geared towards the development of the financial system, influenced the conduct of operators and impacted on the financial markets generally.

Some of these policies included enhancing financial inclusion, increasing fiscal revenue, strengthening insurance service delivery, and improving the quality of banknotes in circulation.

Others were enforcing rules on money laundering, imposing stiffer sanctions on direct cash settlement and e-dividend mandate defaulters, and unfolding the new CBN five-year agenda.