Foreign investment in Nigeria’s stock market has reached an all-time high of N1.3 trillion in the first seven months of 2025, reflecting growing confidence among global investors, according to a recent report from the Nigerian Exchange Limited (NGX).
The report, detailing foreign portfolio investment (FPI) activity up to July 31, 2025, revealed that foreign transactions surged by 114.2% compared to N598 billion recorded in the same period of 2024. This figure also dwarfs previous years, with foreign portfolios amounting to N185.62 billion in 2023, N301.37 billion in the first eight months of 2022, and N262.85 billion in 2021.
Surge in Inflows and Outflows
The NGX data highlighted significant growth in both foreign inflows and outflows. Inflows tripled to N609.73 billion in 2025 from N266.64 billion in 2024, while outflows rose from N331.36 billion to N671.56 billion over the same period. This robust activity contributed to a record-breaking total transaction volume of N6.01 trillion on the NGX, nearly double the N3.1 trillion recorded in the first seven months of 2024.
Factors Driving Investment
Analysts attribute the surge in foreign portfolio investments to increased stability in Nigeria’s foreign exchange market, which has bolstered the naira and created favorable conditions for investors. According to Cordros Capital, the sustained inflows are driven by attractive carry trade opportunities and heightened market confidence. “We anticipate continued foreign investment inflows, supported by a stable forex environment and growing investor optimism,” the firm noted in its report.
Implications for the Market
The unprecedented rise in foreign participation underscores Nigeria’s growing appeal as an investment destination. The NGX’s strong performance in 2025 signals a positive outlook for the country’s financial markets, with foreign investors playing a pivotal role in driving liquidity and market growth. As global confidence continues to strengthen, Nigeria’s stock market is poised for further expansion in the coming months.
