Analysts: Nigeria’s Macro-economic Environment Favourable to Foreign Portfolio Investors
Nigeria's macroeconomic environment is currently highly favorable for foreign portfolio investors (FPIs), according to analysts. The National Bureau of Statistics (NBS) reported a significant increase in capital importation in the country, rising by 20% to $2.5 billion in the first quarter of 2025, the highest in 20 quarters.
FPIs dominated the inflow, accounting for 93% of the total. The surge in portfolio inflow was driven by opportunistic placements in money market instruments, treasury bills, bonds, and equities, offering attractive yields of up to 20%.
However, analysts cautioned that this "hot money" is sensitive to shifts in domestic monetary policy and global risk sentiment. Foreign direct investment (FDI) remained subdued, rising by only 1% to $7 million, reflecting low confidence in the economy due to insecurity, weak institutions, and bureaucratic inefficiencies.
The financial services and banking sectors attracted the most inflow, while FDI.
Plus234Feed summary based on reporting from This Day. Read the original report below.
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