Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 44)

Total transaction at the national bourse increased by 15.95 percent from ₦121.9 billion in August 2019 to ₦141.45 billion in September 2019.1 The increase in total transaction is attributable to a 47.81 percent increase in foreign transactions which outweighed the decrease in the domestic transaction (19.09 percent). We expect foreign portfolio investment (FPI) to continue to drive investment inflows into Nigeria. However, FPI could be a challenge in the near term, especially as external reserve decline and investors become wary of exchange rate stability and political uncertainties. Ongoing efforts to improve the business environment, such as tax relief for foreign investors and higher lending requirements to private sector, should be sustained. In addition, the capital market should be deepened through the introduction of derivatives to shore up investment and reserves.

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