Turnover on the Nigerian stock market has climbed to an unprecedented N10 trillion, driven by sustained interest from both local and foreign investors who are responding to improved macroeconomic indicators and stronger earnings prospects of listed companies.
Latest trading data released by the Nigerian Exchange showed that total transactions have doubled so far this year, reaching N9.57 trillion in the first 10 months—an increase of 114.1 per cent over the N4.47 trillion recorded during the same period in 2024.
The report, which detailed investment flows from both domestic and foreign portfolio investors, indicated that the surge in market activity was largely propelled by foreign participation. Foreign investors now account for more than one-fifth of total transactions.
Foreign portfolio investors (FPIs) currently represent 21.2 per cent of market activity, up from 16.7 per cent in the corresponding period last year.
Total foreign transactions have almost tripled to N2.03 trillion as of October 2025, marking a 172.45 per cent rise from N744.3 billion recorded in the first 10 months of 2024.
A breakdown of the figures revealed strong foreign appetite for Nigerian equities, with inflows significantly outweighing outflows. FPI inflows reached N1.118 trillion—225 per cent higher than the N344 billion registered by October 2024—while outflows doubled to N909.6 billion from N400 billion in 2024.
This shift reversed last year’s FPI deficit of N56 billion, resulting in an FPI surplus of N209 billion in 2025, underscoring increased confidence in the Nigerian market.
Domestic investor participation also witnessed a sharp rise. Total domestic transactions climbed to N7.54 trillion, up from N3.73 trillion recorded in 2024, fuelled by stronger activity from both institutional and retail investors.
“Institutional investors’ turnover jumped to N4.6 trillion compared with N1.8 trillion in the corresponding period of 2024. Retail investors’ transactions rose to N2.9 trillion in 2025 from N1.9 trillion in 2024.”
According to the NGX, domestic transactions have risen by 33.15 per cent over the past 18 years, while foreign transactions grew by 38.31 per cent within the same period.
Market analysts attribute the heightened demand for Nigerian assets to improvements in the country’s macroeconomic conditions. The NGX noted that the bullish run aligns with ongoing economic reforms that have helped stabilise the business environment.
These reforms include liberalising the naira, removing fuel subsidies, and strengthening coordination between fiscal and monetary authorities—measures the NGX said have helped restore confidence despite persistent inflationary pressures.
Group Managing Director of the Nigerian Exchange Group Plc, Mr. Temi Popoola, said the market’s performance reflects the impact of a “wave of coordinated reforms” that have strengthened the country’s financial system.
He said: “The strength we’ve seen in the market has been driven largely by reforms, from the President’s economic agenda to decisive actions by the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), PENCOM, and other regulators. These efforts have created the right foundation for investor confidence and renewed market activity”.
Speaking at the Financial Times Africa Summit 2025 in London during a panel session on “Nigeria’s Economic Journey: Crisis, Recovery, and Risk,” Popoola highlighted the renewed investor confidence and the resilience of Nigeria’s capital markets amid shifting economic conditions.
Director General of the SEC, Dr. Emomotimi Agama, said the enactment of the Investments and Securities Act 2025 marked a significant milestone for transparency and governance within the markets.
He said: “The new law was crafted to reflate the economy by providing clarity, certainty, and discipline in our markets. Robust regulation has been central to restoring market integrity and investor trust, providing the transparency required to anchor long-term capital formation in Nigeria”.
Managing Director of Highcap Securities Limited, David Adonri, noted that the surge in retail participation is a positive indicator for overall market stability.
He said: “The growth in retail participation at a time when institutional and foreign investors are slowing down shows that local investors are becoming more confident and more informed. It reflects the impact of technology, easier access and sustained market education. Retail investors are gradually becoming a stabilising force in our market”.
