Business
Foreign Portfolio Investments Drop 49% In 2 Months Of 2023

There are indications that foreign investors are not yet comfortable with Nigeria’s external sector position as well as the political environment as Foreign Portfolio Investments, FPIs, declined by a significant 48.7 percent in the first two months of this year when compared to the corresponding period of 2022.
The foreign investors had renewed their divestment measures some months before the general elections, a development which signaled lack of confidence.
Vanguard findings from the latest data released by the Nigerian Exchange Limited, NGX, revealed that the value of FP1s for the two months of the year stood at N44.52 billion as against N86.74 billion in the corresponding period of 2022.
In January 2023, the FPIs declined by 39.7 % to N24.9 billion as against N41.31 billion in the corresponding period of 2022. In February 2023 it dropped by a whopping 56.8 % to N19.62 billion as against N45.43 billion in the corresponding period of 2022.
READ ALSO: Naira Depreciates Against Dollar At Investors’ Window
Economy experts and analysts have attributed the decline on FPIs to foreign exchange volatility, inconsistent government policies, and market regulations among others.
In the absence of the foreign investors, the domestic counterparts have filled the gap and in February 2022 they accounted for 88.41 percent of the total value of transactions recorded in the bourse.
The total value of transactions recorded by the Exchange for the two months period stood at N384.01 billion.
Analysis from the latest figure released by the Exchange showed that foreign investors accounted for only 11.59 percent of the total value of transactions.
A review of the transactions showed that in January 2023 domestic investors outperformed the foreign investors accounting for 87.24 percent or N170.20 billion of the total transaction valued at N195.10 billion.
READ ALSO: Stock Investors Record N13bn Loss In Seven Days Over Interest Rates Hike
In the month of February 2023 the domestic investors also outperformed foreign investors accounting for 89.61 percent of the total value of transactions worth N188.91 billion.
Findings revealed that institutional investors dominated the domestic investments in the two months period representing 79.2 percent of the domestic investments worth N339.49 billion.
Experts’ comment
Many financial analysts believe FPIs commitment in Nigeria is on downward trend because of the exchange rate volatility and the political situation in the country.
Commenting, analyst and Executive Vice Chairman, David Adonri, said: “There is a foreign exchange rate risk attendant to foreign portfolio investment. Persistent depreciation of the Naira in recent past is capable of heightening exchange rate risk leading to loss on investments.
“Secondly, foreign portfolio investors’ confidence was eroded by their inability to remit proceeds of their investments.
READ ALSO: CCB Opens Investigation into Atiku’s SPV Saga, Invites Keyamo
“Finally, FPIs are sensitive to socio-political events. Few of the investors who have taken the risk arising for the political tension are investing in Fixed Income, FI.
“The political tension in Nigeria even with the conclusion of the general election is still not over and it continued to threaten the safety of their investments, hence their low confidence in the economy.
“If the new administration is able to make the market attractive we would begin to see foreign investors back to the market.”
Tajudeen Olayinka, CEO of Wyoming Capital and Partners, said: “The Foreign Portfolio Investment in equity is declining because of the exchange rate management.
“A situation of multiple exchange rate regime cannot give room for proper allocation of resources in the economy. This is one of the macroeconomic factors that have made it difficult for Nigeria’s economy to adjust to full employment output and external balance over the years.
READ ALSO: 100,000 May Stall Investigation Of Murdered Enugu House Help– Group
“This situation may improve in the coming years with an administration that has preference for private sector dominance.”
Also commenting, Prof. Uche Uwaleke, Economy expert and President Association of Capital Market Academic of Nigeria, said: “Until we begin to see changes in the monetary policies such as exchange rate, improved market regulations the FPIs will continue to fall.”
Reacting to the decline in FPI, analyst/ Head of Research and Investment, Fidelity Securities Limited, Victor Chiazor, said: “We have constantly seen reduction in foreign portfolio investments year-on-year, YoY, and it is likely that the situation may change once the new administration get things right in the Nigerian economic management system.”
He added, “Issues around exchange rate, capital importation and corporate governance amongst others continue to discourage foreign inflow.
“Until foreign investors see concrete policies and effort to correct some of these anomalies, domestic investors will continue to carry the market.
“Moreso, over the years we have seen investors confidence reduce which has led to the drop in Foreign Portfolio Investment.
“Issues around unavailability of foreign exchange, corporate governance, weak market regulation and oversight function and inconsistent government policies have weakened foreign participation in the equities market and until all of these issues are addressed the market will continue to be dominated by domestic participants.”
VANGUARD
Business
Fixed Income: CBN Announces Fresh Regulations To Control Nigerian Market

The Central Bank of Nigeria has announced sweeping regulations to take control of the Nigerian fixed income market.
The regulations expected to begin in November are aimed at boosting transparency across Nigeria’s financial sector.
The apex bank disclosed this in a recent statement.
CBN noted that the intervention is a key part of broader financial market reforms.
READ ALSO:CBN Establishes New Unit To Tackle Financial Crime
Accordingly, it said its core objective is to enhance regulatory oversight and strengthen the market’s ability to effectively support the transmission of monetary policy and, ultimately, foster economic growth.
“This transition will enable the CBN to assume direct responsibility for the management of the trading platform and handle end-to-end settlement activities under the bank’s established settlement system for financial market transactions,” the statement read.
According to DAILY POST, Fixed income securities refer to investments which provide a return in the form of fixed periodic interest payments and the eventual return of the principal at maturity.
Business
Confusion Over Euro-Africa CCI’s $250m Investment In Edo

The $250m investment deal Governor Monday Okpebholo claimed to have secured during his recent trip to Scotland is generating ripples over capacity of the European African Chamber of Commerce and Industry (EACCI) to make such a huge investment.
The EACCI, headed by a Drector General, Dr. Kingsley Obasohan, is not known to have made any prior investment in Edo State or any part of the country.
Obasohan, who attended the Edo State Global Investment Summit virtually, announced the $250m investment.
He said the investment would be made for a period of three years.
An online search was launched to unravel the EACCI as well as the man Obasohan.
READ ALSO:Okpebholo Warns Companies Against Fuelling Edo–Delta Boundary Dispute
A number on the site was answered by a lady who claimed not to understand English language.
Several foreign partners were listed on the site as board members and advisory council.
Some closed associates of Obasohan said he would have to get clearance from the Board members before talking to journalists on the issue.
Spokesman for the Edo Peoples Democratic Party, Daniel Noah Osa-Ogbegi, said the party would hold Governor Okpebholo accountable to Edo people and demanded clarity on the $250m investment from Glasgow.
Osa-Ogbegi said the proposed investment has become a source of embarrassment to Edo people because of unfolding information about EACCI.
READ ALSO:JUST IN: Okpebholo Nominates Another 5 Persons As Commissioner-designates
He said the party would shine light on fiscal management practices that appeared to ignore transparency and responsibility.
Secretary to the State Government (SSG), Umar Musa Ikhilo, had earlier said those that attended the Glasgow summit were interested in keying into the SHINE agenda of Governor Okpebholo.
“One of the chambers of commerce that attended, the European African Chamber of Commerce and Industry signed an MoU with the Edo State Government to invest a sum of $250 million over the next three to five years.
“Last year, diaspora remittances were the second-highest source of foreign income in Nigeria after crude oil, over $20 billion, but only 2% of that went into investment. We are creating a vehicle to help convert more of that into direct investments.”
He added that a delegation from Scotland was expected to visit Edo State in the coming months to explore specific investment projects as a follow-up to the summit.
Business
Dangote Hits Out At PENGASSAN, Says Union ‘Serial Saboteurs, Serving Oligarchs’

The management of Dangote Petroleum Refinery has berated the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), accusing the union of decades-long sabotage of Nigeria’s oil and gas sector and serving the interests of its leaders rather than ordinary Nigerians.
In a statement issued at the weekend, the refinery described PENGASSAN’s latest directive to cut crude oil and gas supplies to the facility as another act of economic sabotage designed to inflict untold hardship on Nigerians.
“Indeed, over time, the Association has consistently proved itself as serving interests other than those of Nigerians and Nigerian workers,” the statement declared.
Dangote recalled that in 2007, when the Federal Government sold its moribund Port Harcourt and Kaduna refineries to Blue Star Consortium, led by the Dangote Group, for $750 million, it was PENGASSAN and its ally, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), that sabotaged the deal. “It is now obvious to everyone that the FGN’s decision at the time was the right one and that PENGASSAN and NUPENG ignominiously wrote their names on the wrong pages of history,” the company said.
READ ALSO:Dangote Fuel Sells Cheaper In Togo Than In Nigeria – Falana Laments
The refinery also faulted the union’s role in the much-publicised rehabilitation of the Port Harcourt Refinery, describing it as a “ruse” which PENGASSAN “knowingly celebrated despite being a scam on Nigerians.” The statement further accused the union of opposing amendments to the Petroleum Industry Act (PIA) that would have freed up federal liquidity and attracted private-sector funding into Nigeria’s upstream oil ventures.
Beyond policy obstruction, Dangote Refinery accused the association of mismanaging billions of naira in annual check-off dues to allegedly bankroll the “lavish lifestyles” of its leaders, without accountability to members. By contrast, the refinery highlighted its own record of economic contributions within a short period, citing road construction, worker training, the creation of thousands of Nigerian jobs, and a compensation structure that “outdistances the best in the Nigerian oil and gas industry.”
“The Dangote Group is the highest employer of labor in Nigeria and the highest contributor to the tax revenues of Nigeria and its sub-nationals. What comparable social responsibility has PENGASSAN, with its billions of Naira in annual check-off dues and subscriptions, lived up to?” the statement queried, challenging the union to publish its audited accounts for the past ten years. “Can it publish publicly its account for the last 10 years and list out its corporate responsibility activities within that timeframe?”
READ ALSO:Dangote Refinery Reduces Fuel Price Nationwide, Provides Update On Petrol Distribution
The refinery insisted that PENGASSAN’s recent directive to withdraw services and cut off essential fuel supplies, including but not limited to petrol, diesel, kerosene, cooking gas and aviation fuel was reckless, lawless and dangerous. It said the order is not about protecting Nigerian workers, but it is about a cabal of oligarchs weaponising hardship against over 230 million Nigerians.
“In the process, it (PENGASSAN) cares little if at all about the unbearable hardship and terror it would thereby inflict on all Nigerians, including but not limited to the provision of essential services in our hospitals and medical facilities, schools (nursery and right up to tertiary and research institutions), emergency services, communications facilities, transportation systems, etc,” it said.
Dangote Refinery called on the Federal Government and security agencies to step in immediately to protect the facility and the nation’s energy security, stressing that the union must not be allowed to “bully Nigerians into chaos and economic sabotage.”
According to Tribune Online, the federal government has announced readiness to broker peace between Dangote Refinery and PENGASSAN, inviting both to a meeting scheduled for Monday.
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