Foreign portfolio investors (FPI) have reduced their investments in Nigeria's stock market in Q1'23 to N53.71 billion due to concerns about socio-political risks, naira volatility, and other factors. This represents a 58.3% YoY decline compared to the same period in 2022, where FPIs invested N128.91 billion.

The value of FPI participation in the market has consistently declined from January to March this year. YtD foreign investors accounted for only 10.13% of total equities transactions. Additionally, the total FPI outflow outpaced inflow within the three-month period, with N18.12 billion inflow recorded against N35.59 billion outflow.

According to analysts at United Capital Plc, the decline in FPI's participation in equities indicates foreign investors' lack of interest in Nigeria's economy, attributed to insecurity concerns, socio-political risks, declining foreign reserves, debt sustainability risks, increased Naira volatility, and hawkish postures across central banks.

FPIs have declined by a CAGR of 66.7% in the last five years, validating foreign investors' lackluster interest in the Nigerian economy.

source ; Vanguardngr.com
link;https://www.vanguardngr.com/2023/05/foreign-investors-scale-down-holdings-in-nigerian-stocks-by-58/