Last week, the National Bureau of Statistics released the capital importation data for 2022FY. Total capital imported contracted by 20.47% YoY to USD5.33bn in 2022FY (vs USD6.7bn in 2021FY), the lowest Capital Importation figure since 2016. This is an offshoot of weighty declines on Foreign Direct Investment (-33.02% YoY to USD468.08mn in 2022FY), Foreign Portfolio Investment (-27.86% YoY to USD2.44bn in 2022FY) and Other Investment (-7.55% YoY to USD2.42bn in 2022FY). This downtrend further portrays the effects of domestic and global economic woes on the Nigerian economy.
Following the current global and domestic economic realities as well as the prevailing hawkish monetary stance in the advanced clime, we foresee further capital outflows in H1:2023. We base our expectation on protracted structural issues (Insecurity, Unfavourable Business Environment, and Foreign Exchange Uncertainties) in the economy.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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