Foreign investors withdrew N576.09 billion from Nigerian equities in the first half of 2025, an 84.97% surge from N311.41 billion in H1 2024, according to the Nigerian Exchange (NGX) June 2025 Domestic and Foreign Portfolio Investment Report. Despite foreign inflows of N559.25 billion, the higher outflows resulted in a net negative foreign portfolio position of N16.84 billion, highlighting concerns over global market volatility and local policy uncertainties.
The NGX recorded total transactions of N4.19 trillion from January to June 2025, a 60.98% increase from N2.60 trillion in H1 2024. Foreign transactions doubled to N1.14 trillion from N540.48 billion, driven by both inflows and outflows. Economists attribute the spike in sell-offs to global disruptions from U.S. policies under President Donald Trump, including a 14% tariff on Nigeria announced in April, and attractive yields on Treasury Bills amid Nigeria’s 27.5% Monetary Policy Rate.
Domestic investors dominated, contributing N3.06 trillion (72.92% of total trades), up 41.5% from N2.17 trillion in H1 2024. Institutional investors traded N1.59 trillion, slightly outpacing retail investors at N1.47 trillion. The gap widened in June, with institutional trades reaching N364.71 billion, up 49.39% from May, while retail trades fell 18.62% to N274.63 billion, reflecting inflationary pressures (22.22% in June) eroding disposable income.
Monthly data reveals erratic foreign investor behavior. January saw total trades of N346.23 billion, with domestic trades at N269.39 billion (retail: N134.17 billion, institutional: N135.22 billion) and foreign trades at N76.84 billion. February’s activity rose to N448.52 billion, with foreign inflows of N43.67 billion and outflows of N47.93 billion. March marked a peak at N1.29 trillion, driven by a N349.97 billion foreign inflow surge, exceeding the combined total of other months, though outflows reached N205.54 billion, yielding a net gain of N144.43 billion.
April saw a sharp decline to N487.39 billion in total trades, with foreign inflows dropping to N26.47 billion and outflows rising to N70.20 billion, coinciding with the U.S. tariff announcement. May recorded N700.50 billion in trades, with outflows at N60.94 billion outpacing inflows of N24.12 billion. June, the second-highest month at N778.65 billion, saw a recovery in foreign inflows (N72.82 billion) and moderated outflows (N66.49 billion), resulting in a net positive of N6.33 billion.
The naira’s appreciation to N1,529.71/$1 in June from N1,586.15/$1 in May, bolstered by CBN’s $4.1 billion forex interventions in H1 2025, likely supported the modest inflow recovery. However, persistent outflows signal concerns over forex repatriation and policy stability. The NGX’s 39.98% year-to-date gain reflects domestic resilience, but analysts stress the need for consistent policies to curb foreign sell-offs and sustain capital market growth.
