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Foreign Investors Injected N1.5 trillion Into Nigerian Stock Exchange In First Ten Months of 2012

By on December 28, 2012

NSE President, Oscar Onyeama is ambitious about the future of the NSE

Statistics from the Central Bank of Nigeria has shown that the local investor apathy as concerns the Nigerian equities market is not borne by foreign investors.

According to the CBN, out of $12.64 billion in Foreign Direct investment, $10.34 billion was invested in equities.

A further break down reveals that out of $10.34 billion, $9.18 billion (N1.5 trillion) was invested into equity portfolios in the Nigerian Stock Exchange, whilst $1.32 billion went directly into equities.

The Nigerian Stock Exchange is up 32% this year, however it seems the biggest winners are foreign institutional investors as Nigerian retail investors are unwilling to re-enter the market after the crash of 2008.

Speaking on the matter, DG of SEC, Aruma Oteh says foreign investors have shown more foresight in exploiting the opportunities the equities market presents.

She expressed optimism that Nigerians have also began to take advantages of the opportunities.

She said, “We started the year with 80 per cent on a daily basis by value of foreign investment in the market but today we have 70 per cent. So I think that the local investors are also starting to see the opportunities.”