Foreign portfolio investors recorded a net outflow of N266.07 billion from the Nigerian equities market in the first seven months of 2026, more than 1,073 per cent higher than the N22.68 billion net outflow seen in the same period of 2023. Data from the Nigerian Exchange Limited show that foreign portfolio investment remained in net outflow territory throughout the three-year span, with the gap between inflows and outflows widening sharply this year.
Outflows Widen Over Time
In the first seven months of 2023, foreign investors brought in N81.47 billion against outflows of N104.15 billion, leaving a net deficit of N22.68 billion. By July 2024 the net outflow had almost tripled to N64.72 billion, as inflows rose to N266.64 billion but outflows climbed faster to N331.36 billion.
In the corresponding period of 2025, inflows jumped to N609.73 billion while outflows reached N671.56 billion, producing a net outflow of N61.83 billion. This year, inflows stood at N513.36 billion between January and July against outflows of N779.43 billion, resulting in the N266.07 billion deficit.
Compared with the same period in 2023, foreign inflows in 2026 are up by more than 530 per cent, while outflows have risen by about 648 per cent. The N266.07 billion net outflow is more than four times the N61.83 billion recorded in 2025 and roughly 11.7 times the 2023 figure.
Every Month Posted a Deficit
The exit continued even as overall trading expanded. Total transactions on the Nigerian Exchange reached about N11.98 trillion in the first seven months of 2026, almost double the N6.01 trillion recorded a year earlier. The increase was driven largely by domestic investors.
Monthly figures show foreign outflows exceeded inflows in all seven months. January recorded inflows of N47.86 billion against outflows of N66.28 billion, a deficit of N18.42 billion. In February, inflows rose 39.4 per cent month-on-month to N66.71 billion while outflows grew 9.1 per cent to N72.32 billion, narrowing the gap to N5.61 billion.
March saw the largest movement. Inflows jumped 60.5 per cent to N107.05 billion, but outflows surged 151.3 per cent to N181.77 billion, producing the year’s biggest monthly deficit of N74.72 billion. In April, inflows fell 15.1 per cent to N90.84 billion and outflows dropped 13.7 per cent to N156.94 billion, leaving a deficit of N61.10 billion.
May brought temporary relief. Inflows slipped to N87.60 billion while outflows plunged 38.8 per cent to N96.01 billion, cutting the deficit to N8.41 billion. June reversed that trend, with outflows up 19.9 per cent to N115.08 billion and inflows down 18.1 per cent to N71.71 billion, widening the gap to N43.37 billion. July recorded the weakest monthly inflow at N41.59 billion, down 42 per cent from June, while outflows fell 20.9 per cent to N91.03 billion, leaving a deficit of N49.44 billion.
Analysts Stress Need for Foreign Capital
David Adonri, Managing Director of Highcap Securities Limited, said the economy still requires greater foreign participation because of its multiplier effects. “In the world of investment, the more the merrier. Notwithstanding the dominance of local investors in a domestic capital market, the economy still needs increasing participation of foreign investors (Foreign Direct Investment, FDI and Foreign Portfolio Investment, FPI) because of the multiplier effects,” he said.
Adonri noted that pension fund administrators and other local institutional investors now have the capacity to meet the market’s liquidity needs, partly because of the market’s shallow depth. The surge in local investment, he said, may have reduced foreign participation in percentage terms.
He attributed part of the outflows to profit-taking after a prolonged equities rally and to the Central Bank of Nigeria’s release of previously trapped funds owed to foreign investors. “FPI, unlike Foreign Direct Investment, FDI, is not a static capital. It is the working capital that foreign investors employ to trade, which they move from market to market. They are usually hot monies that are always on the move,” he said, adding that sudden flight can be limited if a market is profitable, liquid and safe with controllable sovereign risk.
He warned that local investors cannot sustain the market alone. “Local investors may not be able to shoulder the responsibility alone and their efforts require augmentation from foreign investors. For the wheel of transactions to keep rolling in the capital market, new funds injection is a necessity.”
