Business
Foreign Investors’ Transactions On NGX Decrease By Over 50% In March 2023
According to the March edition of the Domestic & Foreign Portfolio Investment Report of NGX, transactions executed by foreign investors on the local bourse decreased by 53.16% from N19.62bn (about $42.51m) to N9.19bn (about $19.94m) between February and March 2023.
The report read, “Total transactions executed between the current and prior month (February 2023) revealed that total domestic transactions decreased by 19.06 per cent from N169.29bn in February to N137.03bn in March 2023. Similarly, total foreign transactions decreased more significantly by 53.16 per cent from N19.62bn (about $42.51m) to N9.19bn (about $19.94) between February 2023 and March 2023.”
The report further revealed that the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by around 88%, with the figure for local investors standing at 96% to the six per cent of foreign investors.
The report highlighted the factors contributing to this trend, with unclear exchange rates and an unfavorable business environment being cited as the main reasons for the depreciation in Foreign Direct Investment (FDI) in Nigeria.
Insecurity and the opaque Naira foreign exchange regime were also noted as factors contributing to the decline in FDI.
The Director-General of the Securities and Exchange Commission, Lamido Yuguda, echoed these sentiments, attributing the exit of foreign investors to the challenges faced in accessing foreign exchange for the repatriation of dividends or capital.
While the institutional composition of the domestic market decreased significantly by 37.40% from N134.50bn in February 2023 to N84.20bn in March 2023, retail transactions increased by 51.85% from N34.79bn in February to N52.83bn in March 2023.
In 2022, total domestic transactions accounted for about 84% of the total transactions, while foreign transactions accounted for about 16% of the total transactions in the same period.
As of the end of the first quarter of 2023, foreign transactions stood at N53.71bn, with N24.90bn in January, N19.62bn in February, and N9.19bn in March 2023.
Experts, such as Prof Olawale Ajai of the Lagos Business School, suggest that the solution to reversing this trend lies in improving the business environment by addressing the challenges posed by insecurity, low national productivity, and infrastructure deficits, as well as investing in human capital development.
Yuguda also expressed optimism that the foreign exchange situation in Nigeria will improve, leading to an increase in foreign investment in the Nigerian capital market.
Yuguda said, “No matter how attractive the domestic capital market is, a foreign investor will always factor in the ability to transfer their domestic earnings into foreign exchange so that they can repatriate this foreign exchange to their countries.
“At the moment, we all know that we are having some challenges with the foreign exchange situation in Nigeria. That is international investors who are invested, are reporting some delays in assessing foreign exchange for the repatriation of their dividends or their capital.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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