Foreign portfolio investments in Nigeria’s equities market totalled just N1.281 trillion in the first 11 months of 2025, accounting for only 20.77% of total transactions despite various capital market and FX reforms.
This is according to the November 2025 edition of the Domestic & Foreign Portfolio Investment Report published by the Nigerian Exchange (NGX).
The data highlights a sustained preference for caution among offshore investors amid lingering macroeconomic uncertainty, even as overall market turnover more than doubled year-on-year to N10.542 trillion.
Between January and November 2025, total equity transactions on the NGX reached N10.542 trillion, with domestic investors contributing N8.761 trillion (79.23%) and foreign investors trailing at N1.281 trillion (20.77%).
These figures suggest a deepening divide in investor behaviour, with institutional players driving resilience in the face of volatility.
Analysts attribute the muted foreign inflows to inconsistent policy signals, especially surrounding Nigeria’s tax environment.
Tajudeen Olayinka, CEO of Wyoming Capital Partners, pointed to lingering investor scepticism over the implementation of the Capital Gains Tax (CGT), despite assurances from government officials such as Finance Minister Wale Edun and Tax Reform Committee Chair Taiwo Oyedele.
Similarly, David Adonri, CEO of Highcap Securities, acknowledged that recent FX reforms have improved sentiment but stressed that clarity and consistency are key.
Despite weak foreign appetite, Nigeria’s equities market has witnessed one of its strongest liquidity runs in years—driven by robust domestic investor participation, particularly from institutional investors.
Total turnover more than doubled from N4.913 trillion in the same 11-month period of 2024 to N10.542 trillion in 2025.
November’s data shows that while retail investors retreated significantly, institutional players stepped in to sustain momentum, highlighting increasing professionalisation in domestic investing.
Foreign participation, on the other hand, has shown only marginal month-on-month growth throughout the year and remains well below pre-2024 levels.
The persistent underperformance of foreign inflows, even in the face of bold reforms, signals that market sentiment among global investors remains fragile.
Without a clear and sustained macroeconomic policy direction, especially around sustaining foreign exchange management and taxation—offshore investors may continue to stay on the sidelines.
“Domestic participation is cushioning the market, but persistent foreign outflows show that macroeconomic vulnerabilities still linger. Restoring offshore confidence will depend on sustaining FX reforms and stabilising the currency,” Adonri noted.
This matters because foreign portfolio investments play a crucial role in boosting liquidity, improving price discovery, and diversifying capital sources.
This matters because foreign portfolio investments play a crucial role in boosting liquidity, improving price discovery, and diversifying capital sources.
A continued lag in foreign interest could limit the depth and resilience of Nigeria’s capital market in the long term.
For further insight, see our earlier report: NGX attracts N3.48 trillion in institutional trades by H1 2025
With just days left in the year, the data shows that Nigeria’s capital market growth in 2025 has been powered largely by local resilience, not foreign capital—leaving reformers with a clear message: confidence is built not by promises, but by consistency.