Kayode Tokede
With the growing fundamentalness of the stock market section of the Nigerian Exchange Limited (NGX), foreign and domestic investors’ transactions closed in the first quarter (Q1) 2026 at N4.15 trillion, which is about 86 per cent increase over N2.23 trillion in the first quarter (Q1) 2025.
According to the latest “domestic & foreign portfolio participation in equity trading” report of the NGX, domestic investors still outperformed Foreign Portfolio Investments (FPIs) amid numerous reforms that has seen the stock market cross the N140 trillion mark by capitalisation.
Over buying interest across key sectors and an improving macroeconomic outlook, the NGX sustained its positive sentiments in the Q1 of 2026 as investors posted a gain of N29.83 trillion.
According to data obtained from the NGX, the market capitalisation, which opened the year at N99.38 trillion, moved to N129.21 trillion by March 31, 2026, reflecting a remarkable increase of approximately N29 .83trillion within the period.
However, the report noted that domestic investors participation moved from 63.53 per cent in Q1 2025 to 86.94 per cent in Q1 2026, while foreign investors participation dropped to 13.06 per cent in Q1 2026 from 36.47 per cent in Q1 2025.
The report revealed that out of the N4.15 trillion total transactions in Q1 2026, domestic investors transact an estimated N3.61 trillion in Q1 2026, representing an increase of 154.4 per cent when compared to N1.142 trillion in Q1 2025.
For foreign investors, an estimated N541.99 trillion was transacted in Q1 2026, about a 33.4 per cent decline from N814.05 billion in Q1 2025.
The report revealed that in the Q1 2026, indicated weak participation from foreign transactions. Foreign inflows dropped to N221.62 billion in Q1 2026,from N393.68billion in Q1 2025.
Outflows, on the other hand, moved from N420.37 billion in Q1 2025 to N320.37 billion in Q1 2026.
Domestic retail investors transaction moved to N1.45 trillion in Q1 2026 from N678.98billion in Q1 2025, while domestic institutional investor transaction hits N2.16 trillion in Q1 2026, a significant increase of 192 per cent from N739 billion reported by the NGX in Q1 2025.
Analysts attributed the institutional investor transaction 192 per cent growth to National Pension Commission’s (PenCom) decision to raise equity limits for pension funds in February 2026.
The new policy impacted injection of fresh liquidity into the stock market last week as the stock price of some blue-chip companies advanced significantly. PenCom on February 9, 2026, revised investment limits for ordinary shares in RSA Funds I, II, III, and VI-Active.
PenCom amended Section 9 of its investment regulations, increasing equity allocation caps across multiple Retirement Savings Account (RSA) fund classes: RSA Fund I moved from 30 per cent to 35 per cent; RSA Fund II from 25 per cent to 33 per cent; RSA Fund III from 10 per cent to 15 per cent; while RSA Fund VI (Active) from 25 per cent to 33 per cent
According to the report by NGX, “Over a 19-year period, domestic transactions increased significantly by 160.83per cent from N3.556 trillion in 2007 to N9.275 trillion in 2025; whilst foreign transactions also increased significantly by 329.87per cent from N0.616 trillion to N2.648 trillion over the same period.
“Total domestic transactions accounted for about 78per cent of the total transactions carried out in 2025, whilst foreign transactions accounted for about 22per cent of the total transactions in the same period.
“The transaction data for 2026 shows that total domestic transactions are circa N3.6068 trillion, whilst total foreign transactions are circa N0.5420 trillion.”
🚨 BREAKING: Watch the full clip here ➤
