Local Confidence Holds Strong, But Foreign Portfolio Inflows Begin to Soar on NGX!

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Local Confidence Holds Strong, But Foreign Portfolio Inflows Begin to Soar on NGX!

The first half of 2025 has painted an encouraging picture for Nigeria’s capital market — and it’s a tale of resilience, renewed global interest, and shifting dynamics.

Key Highlights:

✅ Domestic investors remain the market’s powerhouse, driving a whopping ₦3.1 trillion in total transactions between January and June 2025.

✅ But here’s the twist — foreign portfolio investments are gathering momentum, rising to ₦1.1 trillion in the same period, up from ₦996 billion just a month earlier.

✅ According to the latest NGX report, June alone saw:
• ₦778.7 billion in total transactions (up 11.1% from May)
• ₦639.34 billion in domestic trades (up 9.9%)
• ₦139.3 billion in foreign trades (up 17.2%)

Market operators believe this uptick in foreign participation signals a turning point. Years of capital flight driven by FX volatility and policy uncertainty may finally be reversing.

️ Patrick Ajudua, President of NewDimension Shareholders Association, calls it a “welcome development” and a sign that global investors are gradually warming up to Nigerian risk assets again.

What’s driving this foreign interest?
• Economic reforms and improved FX stability
• Undervalued Nigerian stocks
• Hopes for sustained macroeconomic improvement

Investor Insights:
While local players are still leading the charge, institutional investors took the spotlight in June, increasing activity by 49.4%! On the flip side, retail investors slowed down a bit — a sign of cautious optimism.


Lesson for the Day
Nigeria’s market may be volatile, but it continues to offer attractive long-term opportunities — especially for those who position early.
Whether you’re a local or foreign investor, the current window might just be the beginning of a broader rally.


Are you observing these trends? Thinking of repositioning your portfolio for H2 2025? Let’s talk about it in the comments.

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