Domestic investors continue to lead trading activity on the Nigerian Exchange Limited (NGX), accounting for N3.41 trillion, or 70.83%, of total equity transactions recorded in the first five months of 2025—far surpassing foreign participation.
According to the latest Domestic and Foreign Portfolio Investment Report released by the NGX, local investors played a dominant role in shaping market momentum this year. Domestic transactions rose sharply in May 2025, hitting N581.59 billion—a 38.81% increase from N418.97 billion in April. This surge contributed to a monthly total of N700.50 billion in equity trades, marking a 45.32% growth compared to the previous month.
Foreign portfolio investments also saw a rebound in May, rising by 88.54% to N118.91 billion from N63.07 billion in April. This uptick reflects renewed interest from international investors amid positive macroeconomic reforms and improvements in Nigeria’s foreign exchange market. Foreign inflows stood at N66.11 billion, while outflows were recorded at N52.80 billion.
Retail investors emerged as key players in the domestic segment, outperforming institutional investors by 16%. Retail transactions soared by 86.12% in May, jumping from N181.31 billion in April to N337.46 billion. Institutional participation also grew, albeit more modestly, increasing by 2.72% to N244.13 billion from N237.66 billion the previous month.
Compared to May 2024, total equity transactions in May 2025 surged by 97.11%, up from N355.38 billion. Year-to-date figures show that overall trading volume in 2025 has grown by more than 51% over the N2.25 trillion recorded in the same period last year—indicating a strengthening of investor confidence across both local and international markets.
Over the past 18 years, domestic participation in Nigeria’s capital market has grown steadily by 33.15%, rising from N3.56 trillion in 2007 to N4.74 trillion in 2024. Foreign transactions have also increased by 38.31% during the same period, climbing from N616 billion to N852 billion.
The NGX credits the rise in domestic trading activity to improved financial literacy among retail investors, wider digital access to the market, and growing confidence following monetary policy tightening and FX reforms introduced by the Central Bank of Nigeria.
As Nigeria’s capital market continues to evolve, the growing influence of local investors underscores a shift toward a more inclusive and resilient financial ecosystem, driven by homegrown participation and stronger regulatory frameworks.
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