Although surrounded by many macroeconomic challenges, Nigeria’s total domestic transactions on the Nigerian Exchange Limited (NGX) for the first quarter of 2023 hit ₦986.21 billion.
The prolonged FX scarcity and inflation among others have been taking their toll on the Nigerian economy.
Also, the capital market, which is the barometer of the economy, has seen mixed sentiments in transactions in the month under review.
Data obtained from the Domestic and Foreign Portfolio Investment Report for the month of March 2023 showed that the total domestic transactions done on the NGX’s platform stood at ₦476.52 billion.
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The total domestic transactions by investors done in the month of January and February 2023 were ₦170.20 billion and ₦339.49 billion, hence the total domestic transactions done in three months rose to ₦986.21 billion.
Comparison Of Transactions
Furthermore, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 88%.
Similarly, institutional investors outperformed retail Investors by 22%.
A comparison of domestic transactions in the current and prior month (February 2023) revealed that retail transactions increased by 51.85% from ₦34.79 billion in February to ₦52.83 billion in March 2023
However, the total transactions at the nation’s bourse decreased by 22.60% from ₦188.91billion (about $409.72 million) in February 2023 to ₦146.22 billion (about $317.09 million) in March 2023.
The performance of the current month when compared to the performance in March 2022 (₦185.26 billion) revealed that total transactions decreased by 21.07%.
A further analysis of the total transactions executed between the March and February 2023 revealed that total domestic transactions decreased by 19.06% from ₦169.29 billion in February to ₦137.03 billion in March 2023.
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Similarly, total foreign transactions decreased more significantly by 53.16% from ₦19.62 billion (about $42.51 million) to ₦9.19billion (about $19.94 million) between February 2023 and March 2023.
Over a 16-year period, domestic transactions decreased by 45.30% from ₦3.556 trillion in 2007 to ₦1.945 trillion in 2022 whilst foreign transactions also decreased by 38.47% from ₦616 billion to ₦379 billion over the same period.
Also, total domestic transactions accounted for about 84% of the total transactions carried out in 2022, whilst foreign transactions accounted for about 16% of the total transactions in the same period.
