The Nigerian Exchange Limited (NGX) recorded a significant rise in trading activity in 2024, with total transactions reaching N5.59 trillion. This increase highlights the growing participation of investors, particularly domestic players, in the country’s equity market.
According to the NGX domestic and foreign portfolio participation report, domestic investors accounted for 85% of the total trading volume, amounting to N4.73 trillion, while foreign portfolio investors contributed N852.03 billion, representing 15% of the overall transactions.
Strong Market Performance in December 2024
The NGX experienced a remarkable surge in trading activity in December 2024, with total transactions hitting N673.66 billion. This marked a 52.29% increase from the N442.34 billion recorded in November and an impressive 95.88% jump compared to the N343.92 billion traded in December 2023.
Domestic investors remained dominant, contributing N606.91 billion (90.09%), while foreign investors accounted for N66.75 billion (9.91%) of the monthly trading volume.
Institutional Investors Lead Domestic Transactions
Institutional investors played a crucial role in driving domestic market activity. In December 2024 alone, institutional transactions surged to N406.04 billion, reflecting a 97.09% increase from November’s N206.02 billion. Meanwhile, retail investors saw a modest rise of 2.81%, with transactions climbing from N195.38 billion in November to N200.87 billion in December.
Long-Term Market Growth Trends
A review of domestic and foreign portfolio participation in equity trading over the years shows steady growth in market activity.
- Domestic transactions grew by 33.15%, rising from N3.56 trillion in 2007 to N4.73 trillion in 2024.
- Foreign transactions increased by 38.31%, from N616 billion to N852 billion over the same period, though they continue to make up a smaller share of total market activity.
By October 2024, domestic transactions had already reached N3.73 trillion, accounting for 83.35% of total trading volume for the year. The NGX reported that equity trading has shown consistent growth over the past three years, with total transactions amounting to N10.82 trillion by the end of 2024, largely driven by local investor participation.
Outlook for 2025
As investor confidence continues to grow, analysts anticipate further expansion in domestic market participation and sustained equity market performance in 2025. However, regulatory policies, economic stability, and global market trends will remain key factors influencing the trajectory of Nigeria’s capital markets.
