Market News

By : Helen Oji

Foreign participation in Nigeria’s equities market closed on a downturn in April 2025, with total transactions declining by 90.9 per cent to N63.07 billion (about $39.50 million), down from N699.89 billion (approximately $455.41 million) in March.

However, domestic investors strengthened their grip on the market, executing transactions worth N418.97 billion, translating to a 0.8 per cent increase from N415.62 billion recorded in the previous month.

According to the Domestic and Foreign Portfolio Investment (FPI) report of the Nigerian Exchange Limited (NGX) for April, this performance saw domestic investors account for 74 per cent more in transaction value than their foreign counterparts.

The modest uptick in domestic activity was largely fueled by improved investor confidence driven by relative macroeconomic stability, attractive corporate earnings releases, and sustained participation by institutional investors.

The NGX attributed the sharp decline to the absence of large block trades that had significantly boosted foreign inflows in March.

Additionally, lingering concerns around foreign exchange volatility and repatriation challenges continued to weigh on foreign investor sentiment during the period.

A look at the 2024 transaction data showed that domestic investors maintained dominance throughout the year, accounting for about 85.per cent of total market transactions, while foreign investors contributed only 15.per cent.

In 2025 so far, domestic transactions have reached N1.837 trillion, while foreign transactions stand at approximately N877.12 billion, further underscoring the growing influence of local investors in Nigeria’s capital market.

As of April 30, 2025, the total transaction value on the exchange dropped significantly by 56.79.per cent, falling from N1.1155 trillion (approximately $725.86 million) in March to N482.04 billion (about $301.90 million) in April.

However, activity remained stronger compared to the same period last year despite the month-on-month decline, as total transactions in April 2025 rose by 39.22 per cent when compared to N346.23 billion recorded in April 2024.

On the retail segment, institutional investors outpaced retail investors by 14 per cent in April. While retail participation declined by 8.02 per cent, from N197.12 billion in March to N181.31 billion in April, institutional activity grew by 8.77 per cent, increasing from N218.50 billion to N237.66 billion.

Looking at long-term trends, domestic investor activity has grown steadily over the last 18 years. From 2007 to 2024, domestic transactions increased by 33.2 per cent, rising from N3.556 trillion to N4.735 trillion.

Foreign transactions also expanded during the same period, climbing 38.31 per cent from N616 billion to N852 billion.