Highest foreign transaction in equity trading down to N69.6bn in 2021

February 21, 2022

DATA on foreign investors’ participation in equity trading on the Nigeria Exchange put together by major custodians and market operators has revealed that the monthly highest total foreign transaction last year was recorded in November 2021 with the figure put at N69.6 billion.

This is compared to the highest total foreign transaction in 2020 which was attained in March 2020 with a traded figure of N110 billion.

It further showed that foreign investors’ participation in the Nigerian Stock Market continually remained uninspiring during the year 2021, worse than what was reported in 2020, and compared to the level of participation recorded in 2019 and 2018.

The participation waned further as investors’ reaction suggested that they have sought good returns elsewhere.

Foreign investors’ participation dropped from January 2021 to October 2021 except for November 2021 when it went up by 3.34 per cent.

Meanwhile, Nigeria’s Foreign Direct Investment (FDI) plunged by 74.01 per cent year-on-year in the third quarter of 2021, the lowest level since the National Bureau of Statistics (NBS) started collating the data in 2013.

From $414.79 million reported in the comparable quarter of 2020, the latest capital importation report by the statistics office shows that Nigeria only attracted $107.81 million in the same period of 2021.

On a quarter-on-quarter basis, the figure, however, reports an increase of 38.27 per cent from the $74.01 million recorded in the third quarter of 2020.

A lack of reforms, which has culminated in weak economic growth, foreign exchange volatility and a harsh business environment, are some of the reasons Nigeria has struggled to attract sufficient foreign investments since 2015.

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