Nigerian investors cautious as capital inflow continues to decline - CNBC Africa

Nigerian investors cautious as capital inflow continues to decline

Western Africa

by Aviwe Mtila 0

The current devaluation policy has led to a continued decline in capital inflows and foreign investors are cautious. Photo: Youtube.

Nigeria’s total capital inflows were down 53.53 per cent in 2015, according to the National Bureau of Statistics. The current devaluation policy has led to the continued decline as foreign investors adopt a ‘wait and see’ approach towards investment in the country.

Speaking to CNBC Africa, Frank Kahumba, who is an Equity Research Analyst at Momentum SP Reid Securities, advices investors on where to put their money.

READ THE HIGHLIGHTS FROM THE CONVERSATION BELOW OR WATCH THE VIDEO:

“According to investors, what they want is a little bit more liquidity into the market. If you remember, between 2012 and 2014, Nigeria was listed in the JP Morgan EM index and it was excluded in 2014 because there was government regulation which restricted foreign exchange transaction.”

-          Frank Kahumba, Equity Research Analyst at Momentum SP Reid Securities.

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“Nigeria offers considerable opportunities for foreign investors and what investors can do is to check which one will be the best option.”

-          Frank Kahumba, Equity Research Analyst at Momentum SP Reid Securities.

“On the report they say that other types of investments, compared to your FDI [foreign direct investment] and your portfolio investment, had quite an increase. So people do have some other avenue in which they could go to. It’s just a matter of knowing exactly where to put the money.”

-          Frank Kahumba, Equity Research Analyst at Momentum SP Reid Securities.

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