Nigeria’s Naira Devaluation Lures Foreigners Back Into Nation’s Stocks
- Benchmark index recovers after sinking to world’s worst losses
- Overseas participation triples to 12%, exchange records show
A customer at an ATM in Lagos.
Photographer: Benson Ibeabuchi/BloombergThis article is for subscribers only.
Last month’s currency devaluation in Nigeria is bringing foreign investors back to the nation’s stock market.
Overseas investment flows have jumped over the past month after incoming President Bola Tinubu’s administration allowed the naira to weaken 40%, according to data from the Nigerian Exchange in Lagos. While the devaluation initially reset the foreign-currency price of the benchmark index lower, stock gains fueled by the flows have mitigated that impact — leading to a 7.5% rebound over the past two weeks.