The Nigerian Exchange (NGX) Limited is experience a surge in equity trading due to reforms embarked upon by the federal government, which are attracting both foreign and domestic investors.
According to the latest NGX’s Domestic and Foreign Portfolio Participation in Equity Trading report, transactions on Customs Street this year have more than doubled in the nine months of 2025, reaching N8.54 trillion versus N3.97 trillion recorded in the same period of 2024, indicating a 115.2 per cent increase.
Analysis showed that foreign portfolio investors (FPIs) accounted for N1.84 trillion of total trades, a 164 per cent year-on-year rise from N696.9 billion a year earlier, while domestic investors contributed N6.7 trillion, up 104.7 per cent from N3.27 trillion in 2024.
Foreign investors represented 21.6 per cent of total market activity during the period, up from 17.6 per cent a year earlier, as domestic investors remained dominant, though it shrank to 78.4 per cent from 82.4 per cent.
Within the domestic segment, institutional investors led activity with N4.09 trillion versus N2.6 trillion from retail participants. Foreign transactions were strong on both the buy and sell sides, with inflows climbing 231 per cent year-on-year to N1.03 trillion, while outflows rose by 110 per cent to N810.4 billion.
Over an 18-year horizon, NGX data shows domestic transactions have grown by 33 per cent from N3.56 trillion in 2007 to N4.73 trillion in 2024, while foreign transactions rose 38 per cent from N616 billion to N852 billion.
Commenting on this development, the Vice Chairman of the board at Highcap Securities Limited, David Adonri, attributed the rebound in foreign participation to renewed confidence following reforms in Nigeria’s foreign exchange regime by the Central Bank of Nigeria (CBN).
The changes, aimed at improving transparency and stability in currency markets, have been credited with enhancing liquidity and reducing uncertainty for foreign investors, he submitted.
“The surge underscores growing optimism about Nigeria’s reform trajectory and corporate resilience,” said one Lagos-based analyst. “The combination of exchange rate realignment, strong earnings, and the ongoing banking recapitalisation drive is making local equities increasingly attractive.”