Domestic investors maintained a commanding presence on the Nigerian Exchange Limited (NGX) in the first five months of 2025, with total transactions surging to N2.419tn, more than double the N996.03bn recorded from foreign portfolio investors within the same period.
This is according to the May 2025 edition of the Domestic & Foreign Portfolio Investment Report released by the NGX and reviewed by THE WHISTLER. The data underscores the widening participation gap between domestic and foreign investors, revealing that domestic transactions outpaced foreign transactions by N1.423tn, representing a margin of 142.87 per cent.
The disparity is largely attributed to weak sentiment among foreign investors, many of whom are increasingly risk-averse in the face of Nigeria’s macroeconomic volatility. Foreign portfolio investors, known for their responsiveness to economic and policy uncertainties, appear to be reducing their market exposure amid inflationary pressures, currency fluctuations, and lingering policy ambiguity.
For the month of May 2025, the total value of transactions on the NGX rose significantly by 45.32 per cent, climbing from N482.04bn in April to N700.50bn.
When compared with the same period in the previous year (May 2024), which posted N355.38bn in total transactions, the May 2025 figure marks a 97.11 per cent year-on-year increase.
Domestic investors dominated activity during the month, accounting for N581.59bn (approximately 83 per cent) of the total transactions, a 38.81 per cent increase from N418.97bn in April.
Meanwhile, foreign transactions, though notably improved, remained modest in comparison, rising 88.54 per cent from N63.07bn to N118.91bn.
A closer look at domestic transaction data revealed that retail investors significantly outperformed institutional investors. Retail trades surged by 86.12 per cent, rising from N181.31bn in April to N337.46bn in May. Institutional investor activity rose marginally by 2.72 per cent, from N237.66bn to N244.13bn over the same period.
This shift highlights growing retail investor confidence and engagement in the Nigerian capital market, possibly driven by improved digital access to trading platforms, relative resilience in select equity segments, and inflation-hedging motives amid persistent consumer price pressures.
Looking at broader trends, the NGX report shows that over 18 years, from 2007 to 2024, domestic transactions on the Exchange increased by 33.15 per cent from N3.556tn to N4.735tn. Foreign transactions also rose by 38.31 per cent, from N616bn to N852bn during the same time frame.
In 2024, domestic investors accounted for about 85 per cent of total transactions on the NGX, leaving foreign investors with just 15 per cent.
The NGX’s latest data reinforce the pivotal role of domestic investors, especially retail participants, in sustaining market momentum, even as global uncertainties and domestic economic headwinds weigh on foreign capital inflows.
Analysts say policy clarity, macroeconomic reforms, and improved FX liquidity could help attract more foreign participation, but for now, local investors remain the driving force behind Nigeria’s capital market resilience.
Domestic investors maintained a commanding presence on the Nigerian Exchange Limited (NGX) in the first five months of 2025, with total transactions surging to N2.419tn, more than double the N996.03bn recorded from foreign portfolio investors within the same period.
This is according to the May 2025 edition of the Domestic & Foreign Portfolio Investment Report released by the NGX and reviewed by THE WHISTLER. The data underscores the widening participation gap between domestic and foreign investors, revealing that domestic transactions outpaced foreign transactions by N1.423tn, representing a margin of 142.87 per cent.
The disparity is largely attributed to weak sentiment among foreign investors, many of whom are increasingly risk-averse in the face of Nigeria’s macroeconomic volatility. Foreign portfolio investors, known for their responsiveness to economic and policy uncertainties, appear to be reducing their market exposure amid inflationary pressures, currency fluctuations, and lingering policy ambiguity.
For the month of May 2025, the total value of transactions on the NGX rose significantly by 45.32 per cent, climbing from N482.04bn in April to N700.50bn.
When compared with the same period in the previous year (May 2024), which posted N355.38bn in total transactions, the May 2025 figure marks a 97.11 per cent year-on-year increase.
Domestic investors dominated activity during the month, accounting for N581.59bn (approximately 83 per cent) of the total transactions, a 38.81 per cent increase from N418.97bn in April.
Meanwhile, foreign transactions, though notably improved, remained modest in comparison, rising 88.54 per cent from N63.07bn to N118.91bn.
A closer look at domestic transaction data revealed that retail investors significantly outperformed institutional investors. Retail trades surged by 86.12 per cent, rising from N181.31bn in April to N337.46bn in May. Institutional investor activity rose marginally by 2.72 per cent, from N237.66bn to N244.13bn over the same period.
This shift highlights growing retail investor confidence and engagement in the Nigerian capital market, possibly driven by improved digital access to trading platforms, relative resilience in select equity segments, and inflation-hedging motives amid persistent consumer price pressures.
Looking at broader trends, the NGX report shows that over 18 years, from 2007 to 2024, domestic transactions on the Exchange increased by 33.15 per cent from N3.556tn to N4.735tn. Foreign transactions also rose by 38.31 per cent, from N616bn to N852bn during the same time frame.
In 2024, domestic investors accounted for about 85 per cent of total transactions on the NGX, leaving foreign investors with just 15 per cent.
The NGX’s latest data reinforce the pivotal role of domestic investors, especially retail participants, in sustaining market momentum, even as global uncertainties and domestic economic headwinds weigh on foreign capital inflows.
Analysts say policy clarity, macroeconomic reforms, and improved FX liquidity could help attract more foreign participation, but for now, local investors remain the driving force behind Nigeria’s capital market resilience.
Domestic investors maintained a commanding presence on the Nigerian Exchange Limited (NGX) in the first five months of 2025, with total transactions surging to N2.419tn, more than double the N996.03bn recorded from foreign portfolio investors within the same period.
This is according to the May 2025 edition of the Domestic & Foreign Portfolio Investment Report released by the NGX and reviewed by THE WHISTLER. The data underscores the widening participation gap between domestic and foreign investors, revealing that domestic transactions outpaced foreign transactions by N1.423tn, representing a margin of 142.87 per cent.
The disparity is largely attributed to weak sentiment among foreign investors, many of whom are increasingly risk-averse in the face of Nigeria’s macroeconomic volatility. Foreign portfolio investors, known for their responsiveness to economic and policy uncertainties, appear to be reducing their market exposure amid inflationary pressures, currency fluctuations, and lingering policy ambiguity.
For the month of May 2025, the total value of transactions on the NGX rose significantly by 45.32 per cent, climbing from N482.04bn in April to N700.50bn.
When compared with the same period in the previous year (May 2024), which posted N355.38bn in total transactions, the May 2025 figure marks a 97.11 per cent year-on-year increase.
Domestic investors dominated activity during the month, accounting for N581.59bn (approximately 83 per cent) of the total transactions, a 38.81 per cent increase from N418.97bn in April.
Meanwhile, foreign transactions, though notably improved, remained modest in comparison, rising 88.54 per cent from N63.07bn to N118.91bn.
A closer look at domestic transaction data revealed that retail investors significantly outperformed institutional investors. Retail trades surged by 86.12 per cent, rising from N181.31bn in April to N337.46bn in May. Institutional investor activity rose marginally by 2.72 per cent, from N237.66bn to N244.13bn over the same period.
This shift highlights growing retail investor confidence and engagement in the Nigerian capital market, possibly driven by improved digital access to trading platforms, relative resilience in select equity segments, and inflation-hedging motives amid persistent consumer price pressures.
Looking at broader trends, the NGX report shows that over 18 years, from 2007 to 2024, domestic transactions on the Exchange increased by 33.15 per cent from N3.556tn to N4.735tn. Foreign transactions also rose by 38.31 per cent, from N616bn to N852bn during the same time frame.
In 2024, domestic investors accounted for about 85 per cent of total transactions on the NGX, leaving foreign investors with just 15 per cent.
The NGX’s latest data reinforce the pivotal role of domestic investors, especially retail participants, in sustaining market momentum, even as global uncertainties and domestic economic headwinds weigh on foreign capital inflows.
Analysts say policy clarity, macroeconomic reforms, and improved FX liquidity could help attract more foreign participation, but for now, local investors remain the driving force behind Nigeria’s capital market resilience.
Domestic investors maintained a commanding presence on the Nigerian Exchange Limited (NGX) in the first five months of 2025, with total transactions surging to N2.419tn, more than double the N996.03bn recorded from foreign portfolio investors within the same period.
This is according to the May 2025 edition of the Domestic & Foreign Portfolio Investment Report released by the NGX and reviewed by THE WHISTLER. The data underscores the widening participation gap between domestic and foreign investors, revealing that domestic transactions outpaced foreign transactions by N1.423tn, representing a margin of 142.87 per cent.
The disparity is largely attributed to weak sentiment among foreign investors, many of whom are increasingly risk-averse in the face of Nigeria’s macroeconomic volatility. Foreign portfolio investors, known for their responsiveness to economic and policy uncertainties, appear to be reducing their market exposure amid inflationary pressures, currency fluctuations, and lingering policy ambiguity.
For the month of May 2025, the total value of transactions on the NGX rose significantly by 45.32 per cent, climbing from N482.04bn in April to N700.50bn.
When compared with the same period in the previous year (May 2024), which posted N355.38bn in total transactions, the May 2025 figure marks a 97.11 per cent year-on-year increase.
Domestic investors dominated activity during the month, accounting for N581.59bn (approximately 83 per cent) of the total transactions, a 38.81 per cent increase from N418.97bn in April.
Meanwhile, foreign transactions, though notably improved, remained modest in comparison, rising 88.54 per cent from N63.07bn to N118.91bn.
A closer look at domestic transaction data revealed that retail investors significantly outperformed institutional investors. Retail trades surged by 86.12 per cent, rising from N181.31bn in April to N337.46bn in May. Institutional investor activity rose marginally by 2.72 per cent, from N237.66bn to N244.13bn over the same period.
This shift highlights growing retail investor confidence and engagement in the Nigerian capital market, possibly driven by improved digital access to trading platforms, relative resilience in select equity segments, and inflation-hedging motives amid persistent consumer price pressures.
Looking at broader trends, the NGX report shows that over 18 years, from 2007 to 2024, domestic transactions on the Exchange increased by 33.15 per cent from N3.556tn to N4.735tn. Foreign transactions also rose by 38.31 per cent, from N616bn to N852bn during the same time frame.
In 2024, domestic investors accounted for about 85 per cent of total transactions on the NGX, leaving foreign investors with just 15 per cent.
The NGX’s latest data reinforce the pivotal role of domestic investors, especially retail participants, in sustaining market momentum, even as global uncertainties and domestic economic headwinds weigh on foreign capital inflows.
Analysts say policy clarity, macroeconomic reforms, and improved FX liquidity could help attract more foreign participation, but for now, local investors remain the driving force behind Nigeria’s capital market resilience.
