Equity Trading on Nigerian Exchange Surges 115% as Reforms Draw Foreign, Domestic Investors

Transactions by domestic and foreign investors on Nigerian Exchange (NGX) more than doubled in the nine months of 2025, reaching ₦8.54 trillion a 115.2% increase from ₦3.97 trillion recorded in the same period of 2024.

According to NGX’s latest Domestic & Foreign Portfolio Participation in Equity Trading report, the surge marks a record high for total market activity, buoyed by stronger participation from Pension Fund Administrators (PFAs) and high-net-worth domestic investors.

Foreign portfolio investors (FPIs) accounted for ₦1.84 trillion of total trades, a 164% year-on-year rise from ₦696.9 billion a year earlier, while domestic investors contributed ₦6.7 trillion, up 104.7% from ₦3.27 trillion in 2024.

Foreign investors represented 21.6 per cent of total market activity during the period, up from 17.6% a year earlier. Domestic investors, while still dominant, saw their share ease slightly to 78.4% from 82.4%

Within the domestic segment, institutional investors led activity with ₦4.09 trillion, compared with ₦2.6 trillion from retail participants. Foreign transactions were strong on both the buy and sell sides. Inflows climbed 231% year-on-year to ₦1.03 trillion, while outflows rose 110% to ₦810.4 billion.

Over an 18-year horizon, NGX data shows domestic transactions have grown by 33% from ₦3.56 trillion in 2007 to ₦4.73 trillion in 2024, while foreign transactions rose 38% from ₦616 billion to ₦852 billion.

David Adonri, Vice Chairman of The Board at Highcap Securities Ltd says the rebound in foreign participation reflects renewed confidence following reforms in Nigeria’s foreign exchange regime by the Central Bank of Nigeria (CBN). The changes, aimed at improving transparency and stability in currency markets, have been credited with enhancing liquidity and reducing uncertainty for foreign investors.

“The surge underscores growing optimism about Nigeria’s reform trajectory and corporate resilience,” said one Lagos-based analyst. “The combination of exchange rate realignment, strong earnings, and the ongoing banking recapitalisation drive is making local equities increasingly attractive.”

The Nigerian capital market has benefited from the momentum of President Bola Tinubu’s economic reforms, with improved clarity around monetary policy and renewed interest in Nigeria’s oil and non-oil sectors bolstering investor sentiment.

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