According to a National Bureau of Statistics research, the Nigerian stock market drew a total of $19.2 billion (N8.83 trillion) in foreign direct investment between 2018 and 2022 as international investors bought low-cost stocks (NBS). This statistic represents 31.2% of the country’s total capital imports of $61.46 billion during the time period under consideration.
An analysis of the NBS data revealed that 2021 and 2022 saw the greatest declines in FDI. This was linked by analysts to problems with the local economy, including a lack of foreign currency and political unpredictability. Further research revealed that the stock market drew $469.42 million of the $5.33 billion in capital inflow into the economy of the country in 2022.
Analysts, however, think that FPI is committed to Nigeria is on downward trend, attributing it to foreign exchange volatility and the political situation in the country. “If the new administration in 2023 are able to make the market attractive, we would begin to see foreign investors back to the market.”
Meanwhile, analysis showed that the banking sector attracted in $16.97billion in five years under review.
The figure represents 27.6 per cent of the total capital importation into the country in the five years period.