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.
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