Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 25)

Foreign and domestic investors consolidated their portfolio investments in May 2019 by increasing the value of their buy orders for Nigerian equities by about 50%. Compared to April 2019, total portfolio investments increased from N148.91 billion to N221.13 billion in May 20191. This makes it the second month of increase in the second quarter, indicating improvements from previous months of decline in the first quarter of 2019. The increases were triggered by greater investments from domestic investors, as the total value of transactions executed by domestic investors significantly outperformed transactions executed by foreign investors by 30%. However, improvements in both the domestic and foreign portfolio investments may be connected to limited uncertainties and a boost in investors’ confidence in the economy, following the end of the election periods. At the minimum, we expect that the portfolio inflows will be sustained. However, increments in portfolio investment will depend on the extent to which inflation is curbed, maintaining stability in the foreign exchange market and the friendliness of the overall investment climate

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