Connect with us

News

Foreign Portfolio Investors Withdraw N1.87tn under Buhari

Published

on

President Muhammadu Buhari and his vice Osibanjo
Kindly share this post

Foreign portfolio investors(FPIs) have withdrawn a total of N1.87tn in four years, starting from June 2015, after President Muhammadu Buhari was sworn into office, according to the Punch.

 

The latest data obtained from the Nigerian Stock Exchange (NSE) showed that the investors withdrew N163.77bn after his re-election in February.

 

Analysts at the United Capital Plc have described the delayed policy formulation and cabinet formation by President Muhammadu Buhari as a risk to capital inflow to the country.

 

They noted that in the absence of profound changes in the policy environment, only the FPIs in search of cheap naira assets would dominate capital importation into the county, while Foreign Direct Investments would remain on the sidelines.

 

An analysis of data obtained at the NSE revealed that the year 2018, the preceding year to the general elections, saw the highest withdrawals of the FPIs in four years, as they withdrew N642.65bn.

 

Mr Peter Ashade, group chief executive officer, United Capital, said the lack of economic policy reforms would continue to scare the FPIs off equities while policy stability and a double-digit interest rate would promote a further appetite for fixed income instruments.

 

Data from the National Bureau of Statistics revealed that the FPI flows continued to account for the bulk of capital imported into Nigeria.

 

In the first quarter of 2019, the amount surged by 56.5 per cent year-on-year to $7.1bn, despite the jitters that trailed the February general elections and the eventual conduct in the Q1.

 

Total capital imported into the country surged by 34.6 per cent year-on-year to settle at $8.5bn, the highest since the third quarter in 2013.

 

This revealed that across the three components of capital imported, the FPIs accounted for the bulk of expansion observed.

 

According to him, weaker capital inflows reflect the impact of waning confidence in the Nigerian economy by foreign investors amid concerns about macroeconomic fundamentals of the Nigerian economy.

 

Analysts at United Capital said, barring any external shocks, they expected the naira to stabilise this second half of the year.

 

They said the stability would be buoyed by a sustained foreign exchange intervention and continued FPI inflows.

 

However, they expressed concerns, saying the “uninteresting macroeconomic environment is scaring the FPIs.”

 

The report read in part, “However, in Nigeria, we believe the lack of economic policy reforms will continue to scare the FPIs off equities while policy stability and a double-digit interest rate will promote a further appetite for fixed income instruments.

 

“Clearly, to boost the FPIs appetite for equities, uncertainties must be out of the way and the Central Bank of Nigeria must reduce the attractiveness of risk-free securities as monetary policy in the global economy becomes easier.”

 

In the second half of 2015, which was the first six months of President Buhari’s tenure, the FPIs withdrew N277.63bn, the highest being in July, when they withdrew N58.83bn.

 

In 2016, the FPIs withdrew N261.03bn; N435.31bn in 2017 and N642.65bn in 2018.

 

In the first half of 2019, the foreign investors withdrew N257.81bn, bringing the total withdrawals under the President Buhari regime to N1.87tn.

 

Alice Tomdio, associate Ddrector, Capital Markets, PwC Nigeria, in an interview with The Punch recently, said, “Once there is any cause to fear, portfolio investors sell out their shares and they come back when the environment is better; all of these create a lot of volatility in the market and may be one of the reasons we do not have a lot of initial public offerings in the country.”

 

Between 2011 and 2015, foreign transactions consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 per cent of the total transaction value in 2017.

 

Also, foreign transactions, which stood at N1.5tn in 2014, declined to N518bn in 2016 but increased significantly by 133 per cent to N1.2tn in 2017. This accounted for about 48 per cent of total transactions in 2017.

 

Over an 11-year period, domestic transactions decreased by 62.46 per cent from N3.5tn in 2007 to N1.3tn in 2017, meaning foreign investors were dominating the market.

 

However, there was a significant increase in domestic transactions between 2016 and 2017 by 111 per cent from N634bn to N1.3tn.

 

Alice Tomdio, president, Independent Shareholders Association of Nigeria, said the economic policies of the country were responsible for the exit of foreign investors.

 

He noted that when the policies were favourable, investors would come around and if otherwise, they would flee.

 

Nwosu, who spoke with our correspondent, said it was not advisable for the FPIs to stay ahead of the general elections because there was no assurance given to them when the polls were approaching.

 

He said, “The FPIs are very careful about their money; these investors have been in this country and have enjoyed a lot. They are not willing to gamble with their money.

 

“When the situation in Nigeria is showing imminent doom, they will all go away and wait until things stabilise. They will want to make sure that the economic situation does not affect their investment, whereby they will lose money.”

 

Mr Afolabi Olowookere, head, Economic Research and Policy Management, Securities and Exchange Commission, (SEC) said foreign investors understood the country and could read it well, knowing when to leave and when to stay.

 

He stated that there were fundamental issues in the economy that needed to be addressed not only to attract but to keep foreign investors.

 

Olowookere said, “We have some investors that were waiting for the President to appoint his cabinet, while some others do more serious analysis on the interest rates in the country, economic performance, efficiency and liquidity of the market and exchange rate.

 

“Investors will be interested in what will happen to the exchange rate and how many companies are listed on the Nigerian Stock Exchange. Foreign investors are responsible for over 50 per cent of the transactions on the stock exchange, whether their investments are increasing or reducing.”

 

He said to attract and retain the FPIs, infrastructure and foreign exchange issues must be addressed.

 

According to him, looking at the road map of the Central Bank of Nigeria, it can be observed that the apex bank is trying to stabilise the macroeconomic environment, as everybody wants inflation to come down so that interest rate can drop.

 

Olowookere said, “Investors want to know how much the government is borrowing and the level of debt sustainability. They want to know how much it will weigh in on the country’s capacity to generate revenue.

 

“They are also interested in the level of liquidity of the market; fortunately, we had two main listings recently, which pushed the market capitalisation from about N10tn to N14tn.

 

“These companies can also compete with Dangote and the likes; that is if the holders are willing to transact. But investors will always come and go. It’s not just about them bringing in money; it is also about what they can buy with it.”

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

News

Galaxy Backbone Confirms Over 150,000 Active Official Government Email Accounts, Clarifies Status of GOVMAIL

Published

on

Kindly share this post

Galaxy Backbone Limited (GBB), Nigeria’s foremost ICT infrastructure and shared services provider to the Federal Government, wishes to reiterate and clarify the availability, maturity, and ongoing expansion of the Federal Government’s official email infrastructure, widely known as GOVMAIL.

GOVMAIL is a secure and centralized official email platform established for use by Ministries, Departments, and Agencies (MDAs) to facilitate professional, auditable, and efficient communication across all arms of government.

The platform was launched by the Office of the Head of the Civil Service of the Federation, Mrs, Didi Esther Walson-Jack as part of a broader digital transformation agenda aimed at modernizing public service workflows and reducing reliance on paper-based correspondence and fragmented, external email services.

Recent statements by the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, underscore the strategic importance of GOVMAIL in the wider push towards a paperless civil service.

In late 2025, she announced that over 100,000 official GOVMAIL accounts had been created for civil servants across federal MDAs under an expanding paperless policy and that the transformation reflects a clear shift away from traditional paper correspondence to secure digital communication at scale. Today, that number has grown to over 150,000 Official government email accounts, current in use by government workers across MDAs.

Galaxy Backbone also affirms that these email accounts operate within a protected sovereign government domain environment hosted on secure local infrastructure, supported by enterprise-grade cybersecurity architecture.

The platform underpins centralized identity management and ensures compliance with national data protection standards, reinforcing accountability, audit-trail visibility, and overall digital governance efficiency.

In addition to GOVMAIL, Galaxy Backbone operates secure national Tier III and Tier IV Data Centres, a robust National Fibre Backbone, a Security Operations Centre (SOC), and a Network Operations Centre (NOC) that jointly power mission-critical government digital services. This infrastructure is closely aligned with the Federal Government’s digital economy strategy and its efforts to deepen digital service delivery, transparency, and efficiency across MDAs.

To accelerate adoption and ensure that every government worker who is expected to have an official email has one, GBB is working collaboratively with MDAs to close existing gaps and onboard remaining staff within the shortest possible time. These coordinated efforts reflect the shared objective of equipping public servants with the digital tools necessary for responsive, efficient, and secure inter-agency communication.

Galaxy Backbone remains committed to working with stakeholders across the different arms of government to sustain and build on this progress. The company appreciates the emphasis placed on strengthening digital governance and remains ready to provide technical clarifications and support collaborative engagements that further advance Nigeria’s digital public service ecosystem.


Kindly share this post
Continue Reading

News

NITDA Equips Federal Character Commission with Data Tools to Drive Public Sector Reform

Published

on

Kindly share this post

In a strategic move to modernise Nigeria’s public service, the National Information Technology Development Agency (NITDA) has concluded a specialised digital capacity-building programme for the Federal Character Commission (FCC).

The initiative, which included the donation of 35 laptops, aims to transition the Commission from manual processes to a data-driven oversight model, ensuring more transparent and equitable representation across all government MDAs.

In alignment with President Bola Ahmed Tinubu’s key priority area of reforming the economy for sustained and inclusive growth, as well as improving governance for effective service delivery, it forms part of NITDA’s Digital Literacy for All (DL4All) programme aimed at strengthening digital capacity across public sector institutions and building a workforce equipped to drive Nigeria’s digital transformation agenda.

The training, held at the Commission’s headquarters, focused on enhancing participants’ competencies in critical areas such as data analysis and data management, skills considered essential to improving institutional performance and service delivery.

Representing the Director General of NITDA, Kashifu Inuwa CCIE, the Acting Director of Digital Literacy and Capacity Building, Dr Ahmed Yusuf Tambour, explained the purpose of the intervention.

“We are here at the Federal Character Commission to carry out a training for staff of the Commission in the area of digital literacy to enhance their proficiency,” he stated.

He noted that the training was deliberately tailored to align with the Commission’s statutory responsibilities.

“We are particularly focusing on data analysis and data management, because this really aligns with the core mandate of the Commission,” he said.

The Federal Character Commission, which is responsible for monitoring and ensuring equitable representation in public service across Ministries, Departments and Agencies (MDAs), relies heavily on accurate and well-managed data to carry out its oversight functions.

By strengthening staff capacity in data handling and digital tools, NITDA aims to enhance the Commission’s ability to manage nationwide datasets efficiently and transparently.

Describing the programme as impactful and well-received by participants, Inuwa said, “So it’s been a great journey. We’ve trained 35 participants here, and the training has been very well received.”

As part of the intervention, NITDA donated 35 laptops to the Commission to facilitate continuous learning and enable staff to seamlessly integrate digital tools into their daily operations.

The gesture is expected to reinforce the sustainability of the training outcomes and improve workflow efficiency within the Commission.

Expressing optimism about the long-term benefits of the initiative, Inuwa added, “We are hoping that this will help the Commission to manage the very, very important data that they collect across all MDAs.”

The intervention reflects NITDA’s sustained commitment to deepening digital inclusion within government institutions under the Renewed Hope Agenda. By equipping public servants with practical digital skills and the necessary tools, the Agency is advancing institutional efficiency, strengthening data-driven decision-making, and supporting the Federal Government’s vision of a modern public service capable of driving inclusive national development and economic reform.


Kindly share this post
Continue Reading

News

Nigeria, EU Ink Research, Innovation Deal Worth €100Bn

Published

on

Kindly share this post

Nigeria and the European Union have inked a scientific and technology deal that grants access to about €100 billion in research and innovation funding for scientists, start-ups, and public institutions.

The agreement is a significant boost to the country’s tech environment, providing new prospects for research, innovation, and start-up growth.

The arrangement was signed in Abuja by Gautier Mignot, head of the EU delegation to Nigeria and ECOWAS, and Kingsley Udeh, Nigeria’s minister of innovation, research, and technology.

After more than two decades without a formal framework, the agreement transfers cooperation from informal to structured, large-scale collaboration.

The European Commission’s Horizon Europe programme, the world’s largest public research budget, is at the heart of the deal, which will bring together Nigerian researchers and firms to work on cross-border projects in health, agriculture, climate, food systems, and new technologies.

Udeh stated that the relationship puts Nigeria as a continental powerhouse for science and enterprise, with an emphasis on translating research into commercially viable products and assisting startups in scaling into global players.

Gautier Mignot noted that Nigerian organisations are already active in several Horizon-backed and global health research projects, but the new pact provides a legal and political framework to significantly expand participation, funding access and visibility.

To ensure delivery, both parties created a Joint Science and Technical Cooperation Committee to drive implementation and track measurable outcomes.

Beyond academia, the agreement aims to support innovators, boost university–industry collaboration, and help more Nigerian tech firms compete globally, strengthening Nigeria’s position as a leading startup hub in Africa.

 


Kindly share this post
Continue Reading

Trending