International investors withdrew a total of N31.84 billion from the country last month as they continue to sell their interest in the Nigerian Stock Exchange, NSE.
ABOVE PHOTO: President Buhari welcomes SA President Zuma to Nigeria last month
According to a data from the NSE, foreign outflows during the period increased by 20.79 per cent from N26.36 billion in January 2016 to N31.84 billion, consistent with the trend in 2015.
On the contrary, foreign inflows decreased by 35.68 per cent from N17.01 billion in January 2016 to N10.94 billion in February 2016 Year-to-date, the total foreign investment outflow from the market stood at N58.20 billion, representing an increase of over N27.95 billion inflow within the same period.
Meanwhile, analysts at Ezcellon Capital have said that the decision by the Monetary Policy Committee of the Central Bank of Nigeria, CBN, to increase the benchmark rate from 11 per cent to 12 per cent and hike the Cash Reserve Ratio, CRR, for banks to 22.5 per cent from 20 per cent would not have anticipated impact in increasing foreign investment inflow into the country.
They observed that except a proper guidance was provided on the nation’s foreign exchange policy guidelines, investors would continue their “wait and look” stance on the Nigerian economy.
President Muhammad Buhari who has been under pressure as a result of the country’s economic downturn on Thursday responded to growing criticisms of his administration’s performance, saying his government still has years to go.
Read the reasons given by The Nation (newspaper) — founded by the National Leader of the ruling APC, Asiwaju Bola Ahmed Tinubu — for increasing the cover price of the daily: ”The economic is in turmoil. Prices of particularly all valuable items have sky rocketed. Foreign exchange to bring in essential materials for production is hard to come by. The exchange rate has spiralled out of control. Many manufacturing concerns are producing far below their installed capacity and jobs are threatened….
Addressing leaders of the governing All Progressives Congress, APC, in Abuja, the president acknowledged his government was facing increasing attacks 10 months after taking office.
“I know you are being harassed since the election that they haven’t seen anything on the ground,” the president said at the APC’s National Executive Committee meeting. “Well, if you have any explanation that could be accepted, (it) is that you have three more years to go.”
Mr. Buhari spoke about his government’s efforts to strengthen the economy, fight insecurity and improve the electoral system.
He also defended his frequent trips abroad.
“For globetrotting, sometimes, you need to present your case on personal basis to your economic colleagues and neighbors.
“Nothing is better than personal touch and I believe that we are learning a lot and eventually, the nation will realize so.”