Foreign Investors Pump ₦748bn into Nigerian Stocks in 4 Years, Confidence Surges

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Foreign Investors Pump ₦748bn into Nigerian Stocks in 4 Years, Confidence Surges

Nigeria’s stock market has seen a massive boost from foreign portfolio investors over the past four years, signaling renewed confidence in the equities market. According to the latest Domestic & Foreign Portfolio Investment Report released by the Nigerian Exchange Limited (NGX), foreign transactions hit ₦1.718 trillion as of August 2025, up 541% from ₦262.85 billion recorded in 2021.

Key Details:

1. Strong Foreign Inflows
• Foreign portfolio inflows rose to ₦748.23bn in 2025, compared to just ₦123.46bn in 2021 — a jump of 506%.
• Outflows also surged to ₦748.23bn, reflecting higher trading activity from international investors.

2. Boom in Domestic Transactions
• Total transactions on NGX soared by 240.8%, reaching ₦6.916 trillion in August 2025, up from ₦1.213 trillion in 2021.
• Domestic retail investors: ₦2.332 trillion in 2025 (+476% from ₦404.77bn in 2021).
• Domestic institutional investors: ₦3.130 trillion in 2025 (+473% from ₦545.99bn in 2021).

3. Long-Term Trends Show Local Market Strength
• Between 2007 and 2024, domestic transactions grew 33% (₦3.556tn → ₦4.735tn).
• Foreign transactions grew faster at 38% (₦616bn → ₦852bn).
• In 2024, domestic investors accounted for 85% of trading, while foreign participation stood at 15%.

Why It Matters:
• The sharp rise in inflows highlights growing global interest in Nigeria’s equities market.
• Retail investors are playing a bigger role, showing increased confidence in stock investing.
• Institutional participation suggests stronger long-term commitments to Nigeria’s growth story.

✨ In Summary:
Foreign investors have injected ₦748bn into Nigerian stocks in just four years, while local investors — both retail and institutional — are matching the momentum. With transactions hitting nearly ₦7 trillion in 2025, the NGX is fast becoming one of Africa’s most dynamic markets, riding on renewed confidence and deeper participation.