Foreign portfolio investment (FPI) on the Nigerian Exchange Limited (NGX) surged significantly in May 2025, reaching N118.91bn, an 88.54% rise from the N63.07bn recorded in April. This surge reflects a renewed appetite for Nigerian equities among offshore investors, despite macroeconomic headwinds and currency volatility.
The data, released in NGX’s latest Domestic and Foreign Portfolio Investment Report, indicates a continued rebound in investor confidence, particularly among foreign players eyeing Nigeria’s high-yield opportunities. The report revealed that foreign inflows increased from N26.64bn in April to N66.11bn in May, while foreign outflows also rose to N52.80bn from N36.43bn in the previous month.
Total transactions on the NGX in May 2025 stood at N700.50bn, representing a 45.32% increase from N482.04bn in April and a staggering 97.11% rise compared to N355.38bn in May 2024.
Despite the uptick in foreign participation, domestic investors maintained dominance in overall activity. Domestic transactions accounted for N581.59bn, or 83.02% of the total, while foreign investors made up the remaining 16.98% at N118.91bn.
Interestingly, the retail segment led the domestic market, suggesting stronger engagement from individual investors. Retail participation rose sharply by 86.12% to N337.46bn in May, up from N181.31bn in April. In contrast, institutional investment grew modestly by 2.72%, reaching N244.13bn from N237.66bn.
Cumulatively, from January to May 2025, domestic transactions hit N2.42tn—accounting for 70.83% of total market trades. Foreign transactions during the same period stood at N996.03bn, or 29.17%. These figures compare favourably with 2024 data, which showed domestic trades at N1.79tn and foreign trades at N458.29bn.
This growth underscores the continued resilience of Nigeria’s capital market in the face of economic reforms, exchange rate unification, and monetary tightening by the Central Bank of Nigeria.
Market analysts believe the ongoing reform policies by the Bola Tinubu administration, such as the liberalisation of FX markets and renewed focus on attracting foreign direct investment, have begun yielding positive sentiment on the NGX.
“The FX reforms and the promise of a more stable macroeconomic environment are part of what’s driving renewed foreign interest,” said Tunji Adebanjo, a capital markets analyst at GlobalView Investments.
He noted that dollar inflows through FPIs are critical in stabilising Nigeria’s forex reserves and boosting liquidity in the capital market.
NGX noted that the transaction figures were compiled from 100% of active trading license holders and reflect equity market activities only. The exchange continues to encourage more listings from key sectors such as technology, oil and gas, and manufacturing to deepen the market and enhance liquidity.
Meanwhile, the bourse has expressed optimism that the second half of the year will see stronger participation from both domestic and foreign institutional investors, especially as the inflationary outlook improves and macroeconomic policies take firmer root.
The rebound in foreign portfolio investment on the NGX marks a turning point for Nigeria’s capital market. With total transaction value nearing N1tn monthly and sustained retail investor engagement, the outlook for the Nigerian Exchange remains promising—provided economic and regulatory stability continues.
As foreign and local investors reposition for growth, the NGX is poised to remain a crucial channel for capital mobilisation, wealth creation, and economic development.