Foreign capital entering Nigeria’s equity market through portfolio investments jumped 845.9% over two years, reaching N1.03 trillion as of September 2025, compared with N108.93 billion in 2023, according to data from the Nigerian Exchange Limited (NGX).
The NGX report on domestic and foreign equity trading participation also showed foreign outflows rose 443.6% to N810.39 billion over the same period, up from N149.09 billion in 2023.
Combined foreign transactions – inflows plus outflows – climbed 613.4% to N1.84 trillion from N258.02 billion in 2023.
Overall market activity, including both foreign and domestic trades, expanded 214.8% to N8.53 trillion from N2.71 trillion. Domestic investors dominated, accounting for N6.69 trillion in transactions, a 172.6% increase from N2.45 trillion in 2023 and far exceeding foreign activity.
Investment analysts attributed the surge in foreign inflows to improving macroeconomic stability.
Tajudeen Olayinka, an investment banker and stockbroker, linked the trend to steady foreign reserve growth, easing inflation, and falling interest rates. “These developments validate the structural reforms initiated by President Bola Tinubu’s administration in 2023,” he said. “While short-term pain was inevitable, the adjustments were essential to correct long-standing imbalances.”
He cautioned, however, that sustained progress depends on further reforms. “Until inflation and interest rates reach single digits, full celebration is premature. Swift action on remaining structural challenges is critical to prevent capital flight triggered by global shocks.”
David Adonri, executive vice chairman at Highcap Securities Limited, highlighted a reversal in investor sentiment. “In 2023, outflows exceeded inflows, signaling diminished confidence. By 2025, inflows clearly outpaced outflows, reflecting renewed trust,” he noted.
Adonri pointed to the broader market rally as evidence: the NGX All-Share Index has soared from around 50,000 points in 2023 to over 155,000 currently. “Capital raised through new listings in the past two years exceeds that of the previous decade combined,” he added.
The sharp rise in foreign participation underscores Nigeria’s growing appeal to international investors amid ongoing economic reforms, though experts stress the need for continued policy discipline to lock in gains.
