Foreign portfolio investments on the Nigerian Exchange Limited (NGX) surged by 88.54% to N118.9 billion in May 2025, reflecting renewed international confidence in the Nigerian equities market. This figure marks a significant leap from N63.07 billion recorded in April, according to the latest data released by NGX.
The increase in foreign inflows—valued at approximately $75 million based on prevailing exchange rates—helped propel total transaction volume on the NGX to N700.50 billion in May, up from N482.04 billion in April. The 45.32% boost in market activity underscores rising investor sentiment following macroeconomic reforms and foreign exchange market stability.
Year-to-date (YTD) figures further highlight the growing interest from global investors. By the end of May, foreign transactions had accumulated to N996.03 billion, accounting for 29.17% of total market turnover. However, domestic investors remained dominant, with a commanding 70.83% share, reinforcing their stronghold in Nigeria’s capital market landscape.
Domestic investment also recorded robust growth in May. Transactions rose by 38.81% to N581.59 billion, with retail investors significantly outperforming institutional investors. Retail participation jumped by 86.12%, rising from N181.31 billion in April to N337.46 billion in May. This shift indicates a growing appetite among individual investors for equities as inflation and fixed-income yields recalibrate.
Compared to the same period in 2024, total market transactions in May 2025 more than doubled, rising by 97.11% from N355.38 billion. Analysts attribute the sharp rise to positive macroeconomic indicators, foreign exchange unification policies, and ongoing confidence in regulatory and structural reforms.
Speaking on the development, market analysts say the impressive surge in foreign portfolio transactions is a testament to the progress made in monetary and fiscal governance under the Central Bank of Nigeria and Federal Government’s reform-driven policies. These include the liberalisation of the FX regime and the removal of fuel subsidies, both of which have improved transparency and efficiency in financial markets.
“The Nigerian equity market is becoming more attractive to foreign investors due to recent reforms that have brought more clarity to the exchange rate mechanism,” said Samuel Chukwuemeka, a Lagos-based capital markets analyst. “When you add improving corporate earnings and a rebounding economic outlook to the mix, it’s easy to see why both local and foreign investors are increasing their exposure.”
Between January 2024 and May 2025, domestic investors have traded a cumulative N9 trillion in equities, according to NGX data. This continued dominance by local investors demonstrates the resilience and adaptability of Nigeria’s investment community amid changing economic conditions.
Experts say that while the uptick in foreign participation is encouraging, sustaining the momentum will depend on ongoing regulatory reforms, improved ease of doing business, and market-friendly policies. The NGX, for its part, continues to enhance market infrastructure, drive digital innovation, and increase investor education to foster deeper market penetration.
As Nigeria positions itself as a frontier investment destination, observers believe that stronger capital inflows will be crucial in boosting liquidity, supporting market depth, and financing the country’s economic recovery.
With market optimism on the rise and a renewed focus on reform-driven growth, May’s N118.9 billion foreign inflow could signal a turning point for the Nigerian equities market in the second half of 2025.