The confidence to invest and make profit in Nigeria has
dropped drastically over the last year, with investors withdrawing more
than N2.2 trillion from the economy in 2015. According to statistics
from Nigeria’s Data Bureau (NBS), as quoted by Quartz Africa, investor
confidence in Nigeria rose significantly between 2010 and 2013, only to
take a little dive in 2014, and a drastic drop in 2015. When Goodluck
Jonathan was announced acting president of the country in 2010,
following the illness and subsequent death of Umaru Yar’Adua, investing
interest in Nigeria rose by N1.17 trillion. In Jonathan’s second year,
and after a “successful” presidential election, investing interest rose
by N396 billion to an approximate N1.6 trillion. By 2013, investing
interest in Nigeria had risen by N2.65 trillion to N4.22 trillion. In
2014, towards the build-up of the 2015 general elections, which
predicted endless doom for Nigeria, some investors withdrew their monies
from the Nigerian economy, leading to a drop from N4.22 trillion to
N4.1 trillion. In 2015, however, there was a drastic withdrawal of
investing interest in Nigeria, and according to NBS, investing interest
declined by N2.2 trillion in 2015.
Some investors blamed it on
the uncertainties that surrounded the 2015 elections, while many others
blamed it on the lack of policy direction in the first five months of
President Muhammadu Buhari’s administration. Data from the Nigerian
Stock Exchange (NSE) show that investors were voting their monies out of
the economy prior to the election, but immediately after the relatively
free and fair poll, they brought the monies back. Then three months
before the election, NSE lost 8.40 percent of its worth, only to regain
8.30 percent in a single day after the election. By March 31, 2015 –
while the election results were being collated – the NSE market
capitalisation was at N10.718 trillion, but it rose to N11.62 trillion
after Buhari’s victory. The bullish phenomenon was called ‘Bullhari’. As
at December 31, 2015, the market cap was down from N11.62 trillion in
April to N9.85 trillion.
https://www.thecable.ng/revealed-investors-withdrew-n2-2trillion-from-the-nigeria-economy-in-2015 [
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