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The total value of transactions at the Nigerian Stock Exchange declined by 39.58 per cent year-on-year in 2016 due mainly to Nigeria’s economic challenges, particularly the foreign exchange shortages.

In a report released on Thursday, NSE said total transactions fell to N1.151 trillion in 2016 as against N1.905 trillion in the previous year. The decline in transactions resulted mainly from a significant decrease in foreign transactions driven by the country’s FX crisis. Foreign transactions fell 49.51 per cent from N1.025 trillion to N517.55 billion in 2016. Domestic transactions also fell during the period under review, declining by 28.02 per cent from N880.56 billion to N633.82 billion.

Foreign transactions accounted for 49.95 per cent of total transactions in 2016 compared with 53.79 per cent a year earlier while domestic transactions accounted for 55.05 per cent in 2016 from 46.21 per cent reported in the previous year.

“Foreign transactions have consistently outperformed domestic transaction since 2011,” the NSE report said. “However, domestic transactions slightly out performed foreign transactions in 2016 accounting for 55 percent of the total transactions in 2016.”