Foreign portfolio investments into the Nigerian stock market have skyrocketed by 354.4% over three years, reaching N609.73 billion in the first seven months of 2025 (7M’25), up from N134.19 billion in the same period of 2022, according to the latest domestic and foreign transactions report from the Nigerian Exchange Limited (NGX). However, outflows also rose sharply by 382.2% to N671.56 billion from N138.97 billion over the same timeframe, reflecting heightened volatility.
The NGX data reveals total foreign transactions, including both inflows and outflows, jumped 369.2% to N1.281 trillion in 7M’25 from N273.16 billion in 7M’22. Overall market activity surged 240.8% to N6.008 trillion in 7M’25 from N1.763 trillion in 7M’22, driven by robust domestic participation. Domestic retail investors’ transactions grew 311.6% to N1.988 trillion from N482.79 billion, while institutional investors’ activity increased 171.9% to N2.738 trillion from N1.007 trillion.
Year-to-date figures for July 2025 show foreign inflows rose 128.7% to N609.73 billion from N266.64 billion in July 2024, though outflows climbed 102.7% to N671.56 billion from N33.36 billion. Over the past 18 years, domestic transactions have edged up 33.15% from N3.556 trillion in 2007 to N4.735 trillion in 2024, while foreign transactions grew 38.31% from N616 billion to N852 billion, with domestic activity dominating at 85% of total transactions in 2024.
This growth aligns with Nigeria’s economic momentum, including a 67.12% increase in capital importation to $5.64 billion in Q1 2025 and foreign reserves hitting $41.5 billion. However, naira volatility (N1,527/$1 today) and 21.88% inflation in July highlight ongoing challenges. The NGX’s recent N263 billion gain on Monday underscores investor optimism, though the rising outflow suggests caution amid global uncertainties and domestic pressures like the 2027 election cycle.
