Macroeconomic Variables and Foreign Portfolio Investment Volatility in Nigeria

Abstract

The study aims to check the impact of macroeconomic variables on foreign portfolio investment (FPI) volatility in Nigeria using time series data from January, 2014 to December, 2019 obtained from the Central Bank of Nigeria. The test revealed that previous month's volatility in FPI, inflation rate and all share indexes were significant determinants of FPI volatility in Nigeria. Based on the findings, it was recommended among other things that these factors that influence foreign portfolio investment oscillation should be regulated by the appropriate government agencies to ensure more serene investment clime.