Kayode Tokede
Foreign and domestic investors’ transactions on the Nigerian Exchange Limited (NGX) crossed an historic N10.54 trillion in 11 months of 2025 helped by critical reforms by the federal government, which boosted confidence in the local bourse.
The N10.54 trillion transaction represents an increase of 114.6 per cent Year-on-Year (YoY) when compared to N4.91 trillion in 11 traded in the same period in 2024.
This is according to the latest “domestic & foreign portfolio participation in equity trading” report released by the NGX, which stated that total transactions by foreign and domestic participants represented a new record for the stock market.
The report also credited the Pension Fund Administrators (PFAs) and domestic high network investors increasing participation for the new high.
On the back of the historic transactions during the period under review, the market capitalisation of the NGX gained N28.5 trillion.
The report revealed that Foreign Portfolio Investments (FPIs) accounted for N2.19 trillion or 20.77 per cent of the total N10.54 trillion, while domestic investors accounted for N8.35 trillion or 79.23 per cent.
Year-on-Year, foreign investor transactions saw a growth of 179 per cent or N2.19 trillion in from N785.28 billion in 2024 while domestic inventors transactions doubled to N8.35 trillion, about 102.3 per cent growth when compared to N4.13 trillion in 2024.
According to the report, the breakdown of domestic investors showed that domestic institutional investors’ transactions moved from N2.02trillion in 11 months of 2024, to N5.13 trillion in 11 months of 2025, while domestic retail investors’ transactions stood at N3.22 trillion in 11 months of 2025, from N2.11 trillion in same period in 2024.
The report showed that the proportion of foreign investors increased from 15.98 per cent in the in 2024 to 20.77 per cent in 2025. Also, domestic investors closed 11 months of 2025 at 79.23 per cent increase as against 84.02 per cent in 2024.
Furthermore, the report indicated upbeat across the buy and sell sides of foreign transactions as foreign inflows stood at N1.18 billion from N370.15billion in the same period in 2024.
Also, outflows on the other hand, moved from N415.13 billion to N1.01 trillion in the comparable period of 2025.
The surge in foreign investors’ participation in the Nigerian stock market could be attributed the FX reforms by the Central Banks of Nigeria (CBN) aimed at enhancing transparency, compliance, and market stability.
The reforms were part of the CBN’s broader strategy to create a fairer, more stable foreign exchange market and support economic growth through better monetary policies.
Additionally, analysts attributed the upbeat in the stock market to the increasing attractiveness of the Nigerian market to foreign investors, ongoing economic reforms, resilient earnings by Nigerian companies, exchange rate differential, ongoing banking recapitalisation and the reform in the oil sector.
Commenting, the Vice President, Highcap Securities Limited, Mr. David Adnori, attributed the growth in foreign investors’ participation to the federal government’s efforts at resolving foreign exchange backlogs, stressing that it increased investors’ confidence and sustained the rally in the stock market.
“The increase in yield on debt instruments attracted foreign investors to the debt market. The combination of all these factors increased FPI into the capital market. In summary, Nigeria’s high-yield environment, recent regulatory reforms, a large and growing market, and supportive international signals make it an attractive destination for foreign investors seeking growth and diversification,” he added.
Analysts at Coronation, in a report, stated that fuel subsidy removal, liberalisation of the forex market, and monetary policy tightening reforms by the present administration have played a pivotal role in turning the tide.
The firm, in a report titled, “Nigeria’s Bold Economic Reforms: How Investors Can Benefit from New Opportunities in 2025,” said the government, through CBN, removed its hard peg on the Naira and allowed the exchange rate to be influenced more by market forces.
“This removed the subsidy on some US Dollar payments as well as the preferential treatment of some interests. Alongside this, the CBN cleared a backlog of dollar claims from previous years, which improved confidence in the market,” the firm explained.
