The NSE released its data on Foreign Portfolio Inflows (FPI) in Nigeria for they year ended December 2013. It showed a total FPI N1.o42trillion transactions compared to about N1.0trillion in domestic transactions. This figure beats 2012 total of N808billion for FPI’s and is actually the highest since at least 2007. It basically buttresses the sentiments that Nigeria is indeed turning out to be a destination for FPI’s. Now, this should make for a fantastic except…. that really isn’t where the story ends. The figure of N1.o42trillion represents both inflow and outflow combined. The net inflow basically is just N20.48billion. That’s not so good right?
As the chart above depicts, Nigeria in 2013 attracted a total FPI of N531.26 as inflow out of which N510.78 found its way out giving us a net figure of N20.48billion. The chart above does not indicate if this has any direct relationship with the bond tapering in the US or if it connected with the Forex pressures we have been facing as the outflows started to exceed the inflows in July 2013. The silver lining however is that domestic transactions into portfolio investments doubled from N509billion to N1009. It still has a long way to go mach the N3.9tr it enjoyed in 2008.
For avoidance of doubt, FPI represents Forex (denominated in Naira) coming into Nigeria for investments in stocks, bonds etc.
Follow this link to get the full report on FPI into Nigeria in 2013 from the NSE