Nigeria’s stocks have been among the world’s best-performers in the past four months, and foreign investors are a big reason for that.
Nigerian equities have gained in allure for international traders, thanks to the rise in Brent crude prices to around $70 a barrel and an easing of dollar shortages, which are helping Africa’s largest economy recover from its worst slump in 25 years. They’re also attracted by what remain among the cheapest valuations on the continent.
The turnaround has seen investors pile into the New York-based Global X MSCI Nigeria ETF this year, too. That’s increased the exchange-traded fund’s market capitalization to almost $100 million, triple the size of a year ago.