Foreign Portfolio Investment (FPI) surged by 181% to N344.3 billion in 2024 from N122.55 billion recorded in 2023, the National Bureau of Statistics (NBS) has reported.
Data from the Nigerian Exchange Limited (NGX) revealed that FPI growth rose from 4% recorded in 2023 to 16% in 2024.
The NBS report showed that FPI accounted for 58% of Nigeria’s total capital importation in the first half of 2024 and posted a 360.28% year-on-year increase.
Key to this renewed confidence are deliberate policy measures aimed at macroeconomic stability, exchange rate unification, and improved ease of doing business. These initiatives have enhanced Nigeria’s credibility as a viable investment destination now attracting foreign and domestic institutional investors.
David Adonri, Vice President of Highcap Securities Limited, attributed the surge to critical market reforms and the resolution of longstanding issues, such as foreign investors’ trapped funds.
He noted that these efforts have encouraged foreign investors to re-enter the Nigerian market.
“The sustained rally in equities since 2023 has significantly boosted both the volume and value of trades, underscoring the overall improvement in investor sentiment,” Adonri said.
Also, Nigeria’s equities market has experienced improved activity with the average daily trading volume jumping from 500 million shares to 900 million shares this month.
The all-share index closed the year at 102,926.4 points, a 37% increase from its opening value of 74,773.77 in January 2024.
According to Adonri “The sustained growth in trading volumes and increasing participation of institutional investors could position the Nigerian market as a major player in emerging economies, provided the momentum of reforms is maintained.”
Government projections for 2025, focusing on foreign exchange stability and inflation control, have further bolstered investor confidence. These growth-oriented policies, coupled with reforms in the energy sector and infrastructure development, are expected to sustain the upward trajectory of FPI inflows.
“This impressive performance highlights the transformative potential of well-executed economic policies and sends a strong message to global investors about Nigeria’s readiness to reclaim its position as a leading investment hub in Africa,” Adonri added.
As foreign investors continue to bet on Nigeria, market operators predict even stronger inflows in the coming quarters, driven by the government’s commitment to sustaining reforms and creating a business-friendly environment.