…Renewed Offshore Interest Lifts NGX Transactions To N11.9trn
Foreign portfolio investors injected about N1.4trn into Nigeria’s equities market in 2025, representing a 245.17 per cent increase from N396.41bn recorded in the corresponding period of 2024, according to data from the Nigerian Exchange (NGX).
The strong inflow underscores a renewed, though cautious, appetite for Nigerian stocks by offshore investors, despite lingering macroeconomic volatility, foreign exchange pressures and global uncertainties.
An NGX Foreign Portfolio Investment (FPI) report obtained by NEWSNGR showed that the surge in foreign inflows was accompanied by a sharp rise in capital outflows, which climbed to N1.24trn in 2025 from N456.2bn a year earlier, an increase of 172.47 per cent.
Despite the elevated exits, inflows exceeded outflows by about N161bn, translating to a net inflow of roughly 13 per cent and signalling sustained foreign participation in the market.
Market analysts attributed the renewed foreign interest to relatively attractive valuations of blue-chip stocks, improved market liquidity and gradual stabilisation in key macroeconomic indicators.
They noted that the near-balance between inflows and outflows reflects active portfolio rebalancing rather than outright capital flight, as investors respond to shifting domestic and global conditions.
Beyond foreign flows, overall market activity on the NGX strengthened significantly during the year. Total market transactions rose sharply year-on-year to N11.92trn in 2025 from N5.587trn in 2024, representing an increase of N6.34trn or 113.39 per cent.
In December 2025 alone, total transactions increased by 42.13 per cent to N1.38trn from N971.2bn recorded in November 2025. Compared with December 2024, when transactions stood at N673.67bn, market activity more than doubled, rising by 104.91 per cent.
Domestic investors continued to dominate trading activities, accounting for about 78 per cent of total transactions in 2025, while foreign investors contributed the remaining 22 per cent.
In December 2025, transactions executed by domestic investors outperformed those of foreign investors by approximately 34 per cent.
A month-on-month analysis showed that domestic transactions rose by 13.99 per cent to N922.31bn in December 2025 from N809.14bn in November.
Over the same period, foreign transactions jumped by 182.70 per cent to N458.09bn from N162.04bn, reflecting a sharp resurgence in offshore trading activity towards year-end.
Within the domestic segment, institutional investors maintained dominance over retail participants. Institutional transactions increased by 13.63 per cent to N603.62bn in December 2025 from N531.21bn in November, while retail transactions rose by 14.67 per cent to N318.69bn from N277.93bn.
Overall, institutional investors outperformed retail investors by about 30 per cent during the month.
Long-term data also point to sustained growth in Nigeria’s capital market over the past two decades. Over a 19-year period, domestic transactions expanded by 160.82 per cent from N3.556trn in 2007 to N9.2747trn in 2025, while foreign transactions grew by 329.87 per cent from N615.6bn to N2.6475trn.
The improved performance of the equities market aligns with broader trends in Nigeria’s external sector. Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, recently disclosed that Nigeria attracted $20.98bn in foreign capital inflows in the first 10 months of 2025, representing a 70 per cent increase over total inflows recorded in 2024 and a 428 per cent surge compared to $3.9bn in 2023.
According to Cardoso, the renewed investor confidence is linked to strengthened macroeconomic management, foreign exchange market reforms and improved transparency across the financial system.
Data from the National Bureau of Statistics (NBS) also showed that Nigeria attracted $5.6bn in capital inflows in the first quarter of 2025 alone, compared with $12.3bn for the whole of 2024.
The CBN governor further noted that Nigeria’s external position improved markedly in 2025, with the current account balance rising by over 85 per cent to $5.28bn in the second quarter from $2.85bn in the first quarter, supported by higher non-oil exports and stronger foreign exchange inflows.
He added that foreign reserves climbed to $46.7 billion by mid-November, the highest level in almost seven years, providing more than 10 months of import cover and marking the strongest external buffer in a decade.
Cardoso emphasised that the reserve build-up was achieved organically, rather than through borrowing, driven by improved FX market functioning, rising non-oil export earnings and buoyant capital inflows.
Non-oil exports grew by over 18 per cent year-on-year in 2025, benefiting from increased exchange-rate flexibility under the market-determined FX regime. Diaspora remittances also strengthened, rising by about 12 per cent during the year, following improvements in transparency, settlement efficiency and reporting across the FX ecosystem.
The CBN reiterated its commitment to maintaining a flexible exchange-rate framework, allowing the naira to act as a shock absorber while limiting excessive volatility, as policymakers seek to sustain investor confidence and deepen participation in Nigeria’s capital market.
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