Foreign investors remained cautious in November 2025, keeping equity trades on the Nigerian Exchange Limited (NGX) below N200bn for the second consecutive month.
While offshore participation declined, domestic investors—particularly institutional players—continued to dominate market activity, highlighting the growing resilience and influence of local capital in Nigeria’s stock market.
According to the NGX Domestic and Foreign Portfolio Investment report, foreign equity trades in Nigeria fell by 13.17 per cent month-on-month to N162.04bn in November 2025, down from N186.62bn in October.
In dollar terms, foreign transactions dropped from $131.27 million to approximately $112.00 million, reflecting both reduced trading volumes and currency fluctuations at the Nigerian Autonomous Foreign Exchange Market.
Meanwhile, total market activity on the NGX fell 5.95 per cent month-on-month, with aggregate equity trades declining from N1.03tn in October to N971.18bn in November.
Despite the month-on-month drop, trading volumes showed remarkable year-on-year growth, increasing by 119.56 per cent from N442.34bn in November 2024.
Domestic Investors Anchor Market Amid Sluggish Foreign Equity Trades in Nigeria
The pullback by foreign investors contrasted sharply with the performance of domestic market players, who accounted for 83.32 per cent of total equity transactions in November 2025.
Domestic trades stood at N809.14bn, a slight decline of 4.35 per cent from N845.96bn in October, but sufficient to sustain market liquidity and depth.
A closer examination of domestic activity revealed divergent trends between retail and institutional investors.
Retail investor transactions declined sharply by 16.21 per cent to N277.93bn in November, compared with N331.71bn in October.
On the other hand, institutional investors increased participation by 3.30 per cent, raising their trades to N531.21bn from N514.25bn.
Institutional investors therefore outperformed retail traders by 32 per cent, underlining their growing role in stabilising market momentum amid weaker foreign inflows.
Year-to-date, total equity transactions on the NGX reached N10.54tn as of November 2025, more than double the N4.91tn recorded in the same period of 2024.
Domestic investors contributed N8.35tn, representing 79.23 per cent of total transactions, while foreign investors accounted for N2.19tn, or 20.77 per cent.
This compares with 2024 when foreign participation was 15.98 per cent, indicating a gradual recovery in cumulative offshore inflows despite the recent monthly slowdown.
Foreign Equity Trades in Nigeria: Historical Trends and Structural Dynamics
An 18-year analysis of foreign equity trades in Nigeria highlights the rising significance of domestic capital.
Domestic transactions increased by 33.15 per cent from N3.56tn in 2007 to N4.73tn in 2024, while foreign trades grew by 38.31 per cent from N616bn to N852bn over the same period.
In 2024, domestic investors consistently accounted for around 85 per cent of total equity activity, with foreign investors contributing about 15 per cent—a pattern that largely persists into 2025.
Market analysts attribute the subdued foreign participation to global risk aversion, portfolio rebalancing by offshore funds, and lingering concerns about currency stability and capital repatriation.
“Foreign equity trades in Nigeria are affected by global uncertainty and the desire of offshore investors to manage currency and liquidity risks,” said one analyst who monitors NGX activity.
Outlook for Foreign and Domestic Participation
The strong presence of domestic institutional investors has provided a stabilising anchor for the market, compensating for the slowdown in foreign flows.
Analysts suggest that if macroeconomic conditions improve, coupled with enhanced policy clarity and exchange rate stability, foreign investors could return to the market in greater numbers.
Meanwhile, domestic capital—especially institutional investors—is expected to remain a key driver of liquidity.
The trend reflects the growing maturity of Nigeria’s equity market, as local players increasingly dominate trading activity and provide resilience against external shocks.
The NGX performance in November 2025 signals that while foreign equity trades in Nigeria remain subdued, the market’s depth and vibrancy are being maintained by domestic participants, particularly large institutional investors.
As Nigeria closes the year, attention will be on whether policy reforms, currency stability, and investor confidence can reinvigorate foreign interest, or whether domestic capital will continue to underpin market activity in the near term
