Foreign portfolio investments in the Nigerian stock market decreased to 16.67% in the first 11 months of 2022, the lowest level in more than 9 years, amid political unpredictability and a lack of available foreign currency.
In contrast, foreign portfolio investments in the first eleven months of 2021 were 22.93%.
Simon Kitchen, MD, Head of Strategy at EFG Hermes Research, has revealed that international investors are having trouble withdrawing their foreign currency from both frontier markets.
In light of the upcoming general elections and the shift in political leadership, he voiced optimism about Nigeria’s foreign exchange market in 2023.
He urged pension funds in Nigeria and Kenya to invest more money in stocks as a means of fostering the expansion of the stock market.