Local investors, in 2023, domestic transactions on the Nigerian Exchange Limited (NGX) reached N2.9 trillion, surpassing the N362.8 billion recorded for foreign transactions. Domestic transactions constituted 84% of total transactions in 2022, while foreign transactions accounted for 16%. The NGX report for November 2023 revealed a 45.3% decline in domestic transactions from 2007 to 2022 and a 38.5% decrease in foreign transactions during the same period.
As of November 30, 2023, total transactions on the bourse increased by 34.08% from N220.9 billion in October to N300.7 billion in November. This marked a substantial 188.3% increase compared to November 2022. Domestic transactions rose by 22.24%, reaching N229.30 billion, while foreign transactions surged by 113.9% from N33.36 billion to N71.37 billion between October and November, local investors.
Institutional investors outperformed retail investors by 20%, with retail transactions increasing by 7.3% from N86.5 billion in October to N92.8 billion in November 2023. The institutional composition of the domestic market grew by 35.01%, reaching N136.5 billion in November 2023.
Local investors
Eric Akinduro, President of the Ibadanzone Shareholders Association of Nigeria, attributed the capital flight to an unfavorable business environment in Nigeria. He emphasized the need for economic restructuring to address foreign exchange challenges, stating that the high inflation rate could negatively impact company performance and investor returns. Akinduro called for decisive government measures to revive the economy, as reported by guardian.ng
