Foreign inflows into the Nigerian Exchange Limited (NGX) have dropped to N11.26 billion in September 2024, marking the lowest point of the year. According to the latest report from NGX, the first nine months of 2024 saw a total of N310.99 billion in foreign inflows, significantly higher than N108.93 billion in 2023. However, the figure has declined steadily since May 2024, when it peaked at N54.87 billion.
In contrast, foreign outflows worsened to N30.15 billion in September, up from N24.38 billion in August. Experts attribute this decline to the volatile naira and high interest rates, which are pushing investors to seek better returns elsewhere.
The Central Bank of Nigeria’s (CBN) continued interest rate hikes, aimed at tackling inflation, further exacerbate this trend. Inflation reached 33.88% in October, leading to projections that the CBN may raise rates again in its next meeting.
Despite the decline in foreign transactions, total market activity on the NGX surged by 29.90% in September, with domestic transactions increasing by 40.23%. Retail investors led the way, with their transactions rising by 59.42%, outpacing institutional investors. Domestic investors now account for approximately 84% of all transactions, reflecting a shift towards local participation in the equity market.
