Nigeria’s stock market sees sharp decline in foreign Investment

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The Nigerian Exchange Limited (NGX) reported a significant decline in foreign portfolio transactions in April 2025, with a 90.99% drop to N63.07 billion from N699.89 billion in March. This sharp decline was due to the absence of large block trades that boosted foreign inflows in March. As a result, foreign investor activity accounted for only 13.08% of the total market turnover in April.

In contrast, domestic investors continued to drive market activity, with their transactions rising marginally by 0.81% to N418.97 billion in April from N415.62 billion in March. Domestic investors accounted for 86.92% of the total transaction value during the month, with institutional investors leading the charge.

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The NGX report highlighted that institutional transactions increased by 8.77% to N237.66 billion in April from N218.50 billion in March, while retail transactions declined by 8.02% to N181.31 billion from N197.12 billion. Despite the decline in foreign participation, the report noted that total domestic and foreign portfolio transactions from January to April 2025 amounted to N2.714 trillion.

A breakdown of the transactions revealed that domestic investors accounted for N1.837 trillion, representing 67.68% of the total transactions, while foreign investors contributed N877.12 billion, accounting for 32.32%. Comparatively, the same period in 2024 recorded total transactions of N1.894 trillion, comprising N1.560 trillion in domestic transactions and N334.01 billion in foreign transactions

On a long-term trajectory, the report showed that domestic transactions increased by 33.15% from N3.556 trillion in 2007 to N4.735 trillion in 2024, while foreign transactions grew by 38.31% from N616 billion to N852 billion over the same period.

In dollar terms, the total transaction value in April was approximately $301.90 million, compared to $725.86 million in March, using official exchange rates provided by the Central Bank of Nigeria for the respective months. Overall, the report suggests that domestic investors remain a key driver of market activity in Nigeria, while foreign investor participation can be volatile due to factors such as large block trades

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