News
Foreign Portfolio Investors Withdraw N1.87tn under Buhari
Foreign portfolio investors(FPIs) have withdrawn a total of N1.87tn in four years, starting from June 2015, after President Muhammadu Buhari was sworn into office, according to the Punch.
The latest data obtained from the Nigerian Stock Exchange (NSE) showed that the investors withdrew N163.77bn after his re-election in February.
Analysts at the United Capital Plc have described the delayed policy formulation and cabinet formation by President Muhammadu Buhari as a risk to capital inflow to the country.
They noted that in the absence of profound changes in the policy environment, only the FPIs in search of cheap naira assets would dominate capital importation into the county, while Foreign Direct Investments would remain on the sidelines.
An analysis of data obtained at the NSE revealed that the year 2018, the preceding year to the general elections, saw the highest withdrawals of the FPIs in four years, as they withdrew N642.65bn.
Mr Peter Ashade, group chief executive officer, United Capital, said the lack of economic policy reforms would continue to scare the FPIs off equities while policy stability and a double-digit interest rate would promote a further appetite for fixed income instruments.
Data from the National Bureau of Statistics revealed that the FPI flows continued to account for the bulk of capital imported into Nigeria.
In the first quarter of 2019, the amount surged by 56.5 per cent year-on-year to $7.1bn, despite the jitters that trailed the February general elections and the eventual conduct in the Q1.
Total capital imported into the country surged by 34.6 per cent year-on-year to settle at $8.5bn, the highest since the third quarter in 2013.
This revealed that across the three components of capital imported, the FPIs accounted for the bulk of expansion observed.
According to him, weaker capital inflows reflect the impact of waning confidence in the Nigerian economy by foreign investors amid concerns about macroeconomic fundamentals of the Nigerian economy.
Analysts at United Capital said, barring any external shocks, they expected the naira to stabilise this second half of the year.
They said the stability would be buoyed by a sustained foreign exchange intervention and continued FPI inflows.
However, they expressed concerns, saying the “uninteresting macroeconomic environment is scaring the FPIs.”
The report read in part, “However, in Nigeria, we believe the lack of economic policy reforms will continue to scare the FPIs off equities while policy stability and a double-digit interest rate will promote a further appetite for fixed income instruments.
“Clearly, to boost the FPIs appetite for equities, uncertainties must be out of the way and the Central Bank of Nigeria must reduce the attractiveness of risk-free securities as monetary policy in the global economy becomes easier.”
In the second half of 2015, which was the first six months of President Buhari’s tenure, the FPIs withdrew N277.63bn, the highest being in July, when they withdrew N58.83bn.
In 2016, the FPIs withdrew N261.03bn; N435.31bn in 2017 and N642.65bn in 2018.
In the first half of 2019, the foreign investors withdrew N257.81bn, bringing the total withdrawals under the President Buhari regime to N1.87tn.
Alice Tomdio, associate Ddrector, Capital Markets, PwC Nigeria, in an interview with The Punch recently, said, “Once there is any cause to fear, portfolio investors sell out their shares and they come back when the environment is better; all of these create a lot of volatility in the market and may be one of the reasons we do not have a lot of initial public offerings in the country.”
Between 2011 and 2015, foreign transactions consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 per cent of the total transaction value in 2017.
Also, foreign transactions, which stood at N1.5tn in 2014, declined to N518bn in 2016 but increased significantly by 133 per cent to N1.2tn in 2017. This accounted for about 48 per cent of total transactions in 2017.
Over an 11-year period, domestic transactions decreased by 62.46 per cent from N3.5tn in 2007 to N1.3tn in 2017, meaning foreign investors were dominating the market.
However, there was a significant increase in domestic transactions between 2016 and 2017 by 111 per cent from N634bn to N1.3tn.
Alice Tomdio, president, Independent Shareholders Association of Nigeria, said the economic policies of the country were responsible for the exit of foreign investors.
He noted that when the policies were favourable, investors would come around and if otherwise, they would flee.
Nwosu, who spoke with our correspondent, said it was not advisable for the FPIs to stay ahead of the general elections because there was no assurance given to them when the polls were approaching.
He said, “The FPIs are very careful about their money; these investors have been in this country and have enjoyed a lot. They are not willing to gamble with their money.
“When the situation in Nigeria is showing imminent doom, they will all go away and wait until things stabilise. They will want to make sure that the economic situation does not affect their investment, whereby they will lose money.”
Mr Afolabi Olowookere, head, Economic Research and Policy Management, Securities and Exchange Commission, (SEC) said foreign investors understood the country and could read it well, knowing when to leave and when to stay.
He stated that there were fundamental issues in the economy that needed to be addressed not only to attract but to keep foreign investors.
Olowookere said, “We have some investors that were waiting for the President to appoint his cabinet, while some others do more serious analysis on the interest rates in the country, economic performance, efficiency and liquidity of the market and exchange rate.
“Investors will be interested in what will happen to the exchange rate and how many companies are listed on the Nigerian Stock Exchange. Foreign investors are responsible for over 50 per cent of the transactions on the stock exchange, whether their investments are increasing or reducing.”
He said to attract and retain the FPIs, infrastructure and foreign exchange issues must be addressed.
According to him, looking at the road map of the Central Bank of Nigeria, it can be observed that the apex bank is trying to stabilise the macroeconomic environment, as everybody wants inflation to come down so that interest rate can drop.
Olowookere said, “Investors want to know how much the government is borrowing and the level of debt sustainability. They want to know how much it will weigh in on the country’s capacity to generate revenue.
“They are also interested in the level of liquidity of the market; fortunately, we had two main listings recently, which pushed the market capitalisation from about N10tn to N14tn.
“These companies can also compete with Dangote and the likes; that is if the holders are willing to transact. But investors will always come and go. It’s not just about them bringing in money; it is also about what they can buy with it.”
National Bureau of Statistics (NBS) may launch its rebased Gross Domestic Product figure on July 11, according to reports by the Nation.
In economics, rebasing refers to the process of updating the base year used for calculating economic indicators like Gross Domestic Product (GDP) or the Consumer Price Index (CPI).
This is done to reflect changes in the structure and price levels of an economy, making the indicators more accurate and relevant to the current economic situation.
Folorunso Alesanmi, head of Public Relations, NBS, deferred his response to today (Monday) when asked to confirm the information.
In a terse text message reply to our inquiry, he said “I will reply you on Monday when I get the final information about it.”
Recall that the country changed the year of its GDP from 1990 to 2010 in 2014, when the figure was raised by 89 per cent.
The much awaited July 11 figure is expected to increase economic indicators such as per capita income, debt-to-GDP ratio and tax revenue outlooks.
ECOWAS Bank for Investment and Development (EBID) has committed $100 million to support the development of a key section of Nigeria’s Lagos-Calabar Coastal Highway.
This funding covers a 47.7-kilometre stretch, marking Section I, Phase I of the project, which originates from Ahmadu Bello Way in Lagos.
Work on the highway began in March 2024, with Hitech Construction Company Limited appointed as the main contractor.
The announcement was made during EBID’s 92nd Ordinary Session held in Lagos, where the bank outlined a series of development financing commitments amounting to €174 million and $125 million, targeted at infrastructure and social development across the ECOWAS region.
The investment in the Lagos-Calabar Coastal Highway is designed to boost intra-regional connectivity by linking nine Nigerian states. It will also enhance access to strategic seaports, support agro-industrial development, and improve logistical networks along Nigeria’s southern corridor. The highway is further expected to contribute to the formation of a regional supply chain, economically empowering coastal communities.
“The bank also approved $100 million in funding for the Lagos-Calabar coastal motorway project in the Federal Republic of Nigeria. It said that this project, which spans 47.7 km, would link nine Nigerian states and improve access to seaports and isolated agro-industrial areas. EBID noted that the funding would also contribute to the emergence of a regional value chain to support coastal communities.”
Other EBID-backed initiatives include €50 million earmarked for the establishment and outfitting of six technical and vocational education centres in Togo. These centres aim to provide skills training for up to 3,480 youths annually, focusing on high-demand trades.
In Guinea, the bank allocated €28.9 million to revamp four agricultural high schools, and an additional €95.16 million to build three hydroelectric micro-power plants with a combined generation capacity of 30 megawatts, aiming to expand rural access to renewable energy.
Côte d’Ivoire will benefit from a $25 million facility directed at financing clinker imports by Société de Ciment de Côte d’Ivoire—a move expected to support local cement manufacturing and alleviate raw material shortages in the construction sector.
EBID noted that its latest funding initiatives align with the United Nations Sustainable Development Goals (SDGs), particularly Goal 9, which advocates for advancements in industry, innovation, and infrastructure. With these latest disbursements, the bank’s cumulative investment across the West African region has surpassed the $5 billion milestone.
Nigeria’s Minister of Works, David Umahi, recently disclosed that the Federal Government has signed off on contracts exceeding N3 trillion for multiple sections of the Lagos-Calabar Coastal Highway project, extending through Lagos, Akwa Ibom, and Cross River states.
The Lagos segment—Section I—was awarded at N1.068 trillion, with 30 percent of the contract sum already paid.
Section II, which includes multiple bridges and traverses difficult terrain en route to the Dangote Refinery, has been contracted at N1.6 trillion.
Sections III A and III B, covering parts of Akwa Ibom and Cross River, were jointly valued at N1.33 trillion.
President Bola Tinubu officially inaugurated the first completed segment of the coastal highway in May 2025, signalling the project’s steady progress.
LG Electronics has launched a new brand campaign, “Radio Optimism,” designed to help strengthen meaningful human connections and spread optimism through shared musical experiences.
This initiative aligns with LG’s brand promise, “Life’s Good,” and addresses the growing challenge of forming genuine relationships in a technology-driven world.
The Radio Optimism campaign seeks to counteract the disconnection often felt in an era dominated by superficial interactions, such as likes and comments on social media. By harnessing the power of music, LG aims to foster deeper bonds among individuals, promoting a more fulfilling life.
“As technology advances, meaningful human connections become increasingly vital to enrich our lives. LG continues its commitment to bringing optimism into customers’ daily lives, staying true to our enduring brand promise of ‘Life’s Good,’” said Kim Hyo-eun, head of LG’s Brand Management Division.
This campaign reinforces LG’s commitment to creating enriching experiences in digital spaces where today’s consumers spend significant time. Building on this mission, LG has continuously engaged with younger audiences through participatory campaigns that bring the Life’s Good philosophy to life.
Last year’s “Optimism your feed” campaign leveraged social algorithms to foster positivity on social media. This new initiative specifically seeks to address the paradoxical disconnection in an era of hyper-connectivity.
“One of the most reliable predictors of happiness is having deep and meaningful relationships,” said Jean M. Twenge, Professor of Psychology at San Diego State University. “Yet today, many people are spending more time online and less time connecting in person. Social media in particular tends to create shallow relationships rather than the deep connections people need.
“It’s common for people to have hundreds of followers but no one to talk to in real life if they need support. We need to build more meaningful connections with those around us. That might turn around the pronounced decline in happiness that’s occurred over the last decade.”
A new global study* from LG on social connection reveals that 68 percent of people find it harder to make real friends, and a third reported having one or fewer meaningful connections in the past month, with 8 percent experiencing none at all.
Inspired by traditional radio’s unique way of connecting people through music and storytelling, the Radio Optimism campaign transforms this concept into an interactive platform where participants can create and send personalized songs to their loved ones.
Users can easily create new songs using AI-powered tools, which are thoroughly trained on a curated music dataset. These tools interpret user prompts to produce unique musical pieces and generate matching album art, providing an engaging and personalized experience. Once generated, these songs can be sent to recipients to deepen their connection and made available for others to discover worldwide.
According to the survey, nearly 9 in 10 respondents believe that meaningful connections lead to a more optimistic outlook on life. By providing a platform for individuals to express their feelings, this campaign aims to foster deeper connections and help individuals enrich their lives while spreading optimism in their own ways.
The campaign website is available in English and Spanish, with plans to support additional languages in the coming months to enable broader participation. The official website can be found at RadioOptimism.lg.com.
NBS May Release Rebased Figures for Nigerian Economy July 11
Enugu Air Commences Operations Today
20 Years of Digital Leadership: Layer3’s Legacy and the Road Ahead
Galaxy Backbone, Rural Electrification Agency Commit to Deepening Digital and Energy Access Across Nigeria
Lagos-Calabar Highway Gets $100M Push from ECOWAS to Drive Regional Growth
E-Financial3 days agoCourt Affirms NIBSS Authority to Manage BVN
Telecom3 days agoMTN, 9mobile Commence Ground-breaking National Infrastructure Partnership
E-Financial3 days agoNigerian Banks End Years of Embargo, Resume Intl Transactions on Naira Cards
E-Business3 days agoNIMC Says NIN Services Back Online
General News3 days agoCybervergent Selected as World Economic Forum’s 2025 Technology Pioneer Company
Telecom3 days agoKarl Toriola Champions Digital Education for Employability @Sigma Club Lecture
E-Financial3 days agoFlutterwave Secures 20 more US Money Transmitter Licences
E-Business3 days agoReport Reveals African Organizations Dangerously Overestimating Cyber defences