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Elections, Insecurity Jitters Scared Investors Away From Nigeria

Elections, Insecurity Jitters Scared Investors Away From Nigeria

From Standard Digital

Fund managers in Nigeria have been moving cash into government bonds this year and selling riskier assets, dampening a stock market rally as uncertainty over forthcoming elections and growing security risks hit demand for equities. Nigeria’s main stock index returned 44 percent in dollar terms in 2013, thanks to a stable naira currency, making it one of the best performing African equity markets. The gains boosted its allure as an investment destination, attracting foreign investors and pension funds. But Africa’s largest economy has since suffered currency weakness, down almost 3 percent this year, and is beset by uncertainty over upcoming elections, coupled with April’s abduction of over 200 schoolgirls by Islamist group Boko Haram.

That, plus a string of bombs across the north and centre of Nigeria – including three in the capital Abuja – blamed on the militants, have brought it home to many foreign investors that Africa’s top oil producer faces grave security problems.

Read more at Standard Digital