Foreign portfolio participation on the Nigerian Exchange Limited recorded a significant recovery in March 2026, with total foreign transactions increasing by 107.74 per cent to reach N288.82bn.
According to the latest Domestic and Foreign Portfolio Investment report released by NGX Regulation Limited on Wednesday, total market transactions grew 13.10 per cent to N1.744tn in March, up from the N1.542tn recorded in February.
The latest report noted, “The significant jump in foreign inflows, which rose from N72.32bn in February to N181.77bn in March, suggests that international investors are increasingly finding value in Nigerian equities following recent market re-ratings and improved foreign exchange liquidity.”
Despite the surge in foreign activity, domestic investors continued to dominate the bourse, accounting for 83.44 per cent of total transactions. Total domestic value stood at N1.455tn for the month, with institutional investors outperforming retail participants by 26 per cent.
Providing insight into the local market composition, the report added, “The domestic market remains the bedrock of our exchange. With institutional transactions rising to N914.23bn, it is clear that local pension funds and asset managers are maintaining a strong bullish stance on high-quality Nigerian equities, even as foreign interest returns.”
The surge in foreign inflows comes amid a period of aggressive fiscal and monetary reforms aimed at stabilising the naira and attracting foreign direct investment. Historically, foreign participation in the Nigerian capital market has been hampered by currency volatility and challenges in capital repatriation. However, the 107.74 per cent month-on-month increase indicates a potential shift in sentiment as investors respond to improved transparency in the Nigerian Autonomous Foreign Exchange Market.
Year-to-date figures show that total market transactions for the first quarter of 2026 have hit N4.148tn, representing a massive 85.87 per cent increase compared to the N2.232tn recorded during the same period in 2025. This growth reflects the broader market rally that has seen the NGX All-Share Index reach record highs over the last year.
Reflecting on the historical trend and market depth, the report added, “Over a 19-year period, domestic transactions have increased significantly by 160.83 per cent. While foreign participation has fluctuated, the long-term trajectory remains positive, reinforcing the Exchange’s position as a premier destination for both local and international capital.”
As the second quarter begins, market observers expect institutional investors to maintain their leading role, while foreign participation is projected to remain sensitive to macroeconomic indicators, particularly inflation data and subsequent Central Bank of Nigeria interest rate decisions.
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