The Nigerian Exchange Limited (NGX) has reported a significant surge in foreign investment activity, with total foreign transactions on the nation’s stock market reaching ₦1.718 trillion as of August 2025, marking a 541% increase from ₦262.85 billion recorded in the same period in 2021.
According to NGX’s Domestic & Foreign Portfolio Investment Report, the sharp increase reflects renewed investor confidence in Nigeria’s capital markets, buoyed by a mix of policy reforms, improving macroeconomic indicators, and increasing retail participation.
Breakdown of Foreign Transactions
- Foreign Portfolio Inflows rose to ₦748.23 billion, a 506% jump from ₦123.46 billion in 2021.
- Foreign Outflows also surged by 436.8%, reaching ₦748.23 billion, compared to ₦139.39 billion in the same period of 2021.
The data suggests a balanced flow of foreign capital into and out of Nigeria’s equities market, indicating active portfolio rebalancing by offshore investors.
Total Market Activity Hits ₦6.9 Trillion
Overall, total transactions at the NGX reached ₦6.916 trillion as of August 2025, representing a 240.8% increase from ₦1.213 trillion in 2021.
This growth was fueled largely by robust domestic participation:
- Domestic Retail Investors: ₦2.332 trillion in 2025, up 475.8% from ₦404.77 billion in 2021.
- Domestic Institutional Investors: ₦3.130 trillion in 2025, up 473.3% from ₦545.99 billion in 2021.
18-Year Trend Favors Domestic Participation
The NGX report also highlighted long-term trends showing a steady rise in domestic investment:
- From 2007 to 2024, domestic transactions increased by 33.15%, rising from ₦3.556 trillion to ₦4.735 trillion.
- Foreign transactions during the same period grew by 38.31%, from ₦616 billion to ₦852 billion.
As of 2024, domestic investors accounted for about 85% of total market activity, with foreign investors making up the remaining 15%.
“These figures reflect the deepening of the local market and the resilience of Nigerian investors despite macroeconomic challenges,” NGX said in the report.
The surge in both foreign and domestic investment on the NGX comes amid broader government efforts to attract foreign capital, stabilize the naira, and boost economic growth. The increased trading volume could also signal rising corporate confidence and capital market maturity.
As Nigeria continues to recover from past economic shocks, the stock market’s performance in 2025 could serve as a barometer of broader investor sentiment, local and international alike.
