Business
Foreign investors break trend, bought more Nigerian stocks than they sold in 2022
In a rare move, foreign investors bought more Nigerian companies’ stocks than they sold, marking the first net inflow of foreign funds into the market since 2017.
According to data from the Nigerian Exchange Limited (NGX), the country recorded a net foreign inflow of N12.29 billion into its stock market in 2022, in contrast to a net outflow of N24.74 billion the previous year.
However, the data analysis revealed that the foreign investors had to reinvest their dividends and sales proceeds into securities due to the inability to obtain dollars to repatriate their funds.
READ ALSO:External reserves fall to $37.01bn, as foreign investors stay on sidelines
In 2022, Foreign investment in the stock market dropped by N195.76 billion, the lowest in at least 13 years.
In fact, the foreign investment is 75 percent decrease compared to 2017, when the country emerged from recession.
Nonetheless, the Nigerian stock market had a strong showing in 2022, achieving a return of almost 20 percent despite the increase in benchmark interest rates and pre-election tensions.
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