Our Reporter
Foreign portfolio inflows into the Nigerian stock market fell sharply by 30.7% to ₦50.48 billion in July 2025, compared to ₦72.82 billion recorded in June, according to the latest Domestic and Foreign Portfolio Participation Report released on Thursday by the Nigerian Exchange Limited (NGX).
The data also showed a notable increase in foreign outflows, which rose 43.6% to ₦95.47 billion in July, up from ₦66.49 billion in the previous month. This indicates continued foreign investor scepticism about Nigeria’s macroeconomic environment, despite strong market turnover.
Paradoxically, overall transactions on the exchange surged by a remarkable 133.09% to ₦1.815 trillion in July from ₦778.65 billion in June, driven largely by block trades. Compared to July 2024, when total trades stood at ₦491.61 billion, activity rose by an extraordinary 269.19% year-on-year.
Domestic Investors Dominate
The NGX report revealed that domestic investors dominated the market, executing about 84% of total transactions in July. Domestic institutional investors led the charge, with their trades soaring by 216.03% to ₦1.152 trillion from ₦364.71 billion in June. Retail participation also grew by 88.07%, climbing to ₦516.50 billion from ₦274.63 billion.
Institutional investors outperformed retail players by 38%, underscoring their stronger appetite for equities amid shifting monetary conditions and improved corporate results.
Foreign Participation Remains Weak
Despite the headline surge in overall trading volumes, foreign participation remained subdued. Total foreign transactions between June and July increased marginally by 4.76% from ₦139.31 billion to ₦145.95 billion, highlighting limited confidence among offshore investors.
This trend aligns with longer-term data: over the past 18 years, domestic transactions have consistently dwarfed foreign participation. In 2024, for example, domestic trades accounted for 85% of market activity, with foreign investors contributing just 15%.
Structural Implications
Analysts note that while the rise in domestic block trades signals confidence from local institutions, persistent foreign outflows raise questions about Nigeria’s attractiveness to international capital. Concerns such as exchange rate volatility, inflationary pressures, and policy uncertainty continue to weigh on sentiment, even as reforms aim to deepen liquidity and improve transparency.
So far in 2025, total domestic transactions stand at ₦4.727 trillion, compared to ₦1.281 trillion from foreign investors, reinforcing the market’s reliance on local participation.