Local investors staked a total of N10.4tn on the Nigerian Stock Exchange in the last five years.
The investments made by Nigerians covers the period 2007 to 2012, and represents an increase of N6.34tn or 156 per cent compared to the N4.06tn investment by foreign investors in the same period.
In 2007, just before the meltdown of the market, domestic transactions peaked at N3.55tn compared to N615bn worth of foreign transactions in the year, while domestic transactions accounted for N3.97bn in 2008 as against the foreign investments of N787.4bn that year.
In 2009, total domestic transactions stood at N946.84bn as against foreign transactions of N424.6bn, while 2010 saw local investments peaked at N1.02tn compared to N577bn.
Figures obtained by our correspondent from the NSE showed that 2011 marked the lowest year for the local investors as the volume of transactions stood at N421bn compared to the N847.9bn worth of transactions by foreign investors following the nationalisation of three banks by the Federal Government.
In 2012, however, domestic transactions rose to N508.6bn, while foreign investors staked N808.4bn on equities at the Exchange.
As of the first quarter ended March 31, 2013, the total value of transactions of listed securities on the NSE stood at N510.1bn.
This amount represents an increase of N152bn or 42.4 per cent compared to N358.16bn recorded at the end of March 2012.
Total transactions represent the aggregate purchase and sale of listed securities within a defined period.
Analysts said the trend of increase in local participation showed that more local investors are returning to the Nigerian market.
According to them, this shows the growing interest of local and retail investors, who had previously been participating minimally, in the market compared to the interest showed by the foreign investors.
The Chairman, Association of Stockbroking Houses of Nigeria, Mr. Emeka Madubuike, agreed that there had been increased participation by local investors, who had fled the market in the past.
He added that this was largely due to efforts aimed at sanitising the market by the regulators and key stakeholders.
Madubuike said the association had been involved in various interactions with major stakeholders in the capital market on ways to ensure that the growing interest showed by retail investors in the market in the last few months was sustained.
He said, “Since stockbrokers are the frontrunners in the market and the major interface between the investors and the market; we, as an association, have decided to come together to seek ways to increase investor confidence in the market. We will be involved in various investor education schemes to allow investors to become more aware of the happenings in the market.
“We have done a lot in this regard already, and we know that a lot of work still needs to be done; as we want to refocus to ensure that retail investors return to the market. Already, we have seen some improvement in this regard and we hope to see more as the months progress.”
Madubuike explained that stakeholders had been studying what obtained in other markets around the world as regards the global meltdown and what such markets did to overcome the situation, adding that such ideas could be considered and adopted in the Nigerian capital market subject to their workability.
The Director-General, Securities and Exchange Commission, Ms. Arunma Oteh, said the various actions and reforms undertaken by the regulators to grow the market in the last few years had impacted positively on activities.