Fresh data from the Nigerian Exchange (NGX) reveals foreign investors withdrew a hefty N576 billion from local stocks during the first half of 2025 – an 85% jump compared to last year’s outflow. The retreat flipped Nigeria’s investment position negative, leaving a net deficit of nearly N17 billion in foreign portfolio flows.
While international players exited, domestic investors showed unwavering confidence, trading N3.06 trillion worth of shares. This robust local activity, making up 73% of all market transactions, pushed total turnover to N4.19 trillion – a 61% surge from 2024 levels.
Market analysts point to shifting appetites behind the numbers. Foreign funds are increasingly chasing safer returns in fixed-income instruments like Treasury bills. With equities appearing overvalued after last year’s rally and lingering foreign exchange concerns, many see better value beyond volatile stocks.
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On the home front, pension funds and institutional investors now dominate trading floors as high inflation squeezes household budgets. Retail participation is thinning as ordinary Nigerians prioritise essentials over stock investments amid rising living costs.
This growing divide raises questions about market resilience. While record turnover signals vitality, heavy reliance on institutional money could create fragility. Healthy markets thrive on diverse players – a balance Nigeria must now carefully navigate.
