LAGOS, Aug 8 – The Nigerian Exchange Limited (NGX) has reported a significant surge in equity market activity for the first half of 2025, with total transactions climbing to N4.19trillion Naira. This represents a remarkable 61% increase compared to the N2.60tn recorded in the same period of 2024, reflecting strong market momentum and growing investor confidence.
According to the NGX’s “Domestic and Foreign Portfolio Participation in Equity Trading” report for the period ending June 30, 2025, the market’s growth was fueled by heightened interest from both domestic and foreign investors.
Domestic transactions accounted for the lion’s share of activity, making up 72.92% of total trades at N3.06tn. Foreign transactions, while still a smaller portion, rose to N1.14tn, or 27.08% of total trades.
The report highlights a month-by-month breakdown of market performance, revealing a dynamic and sometimes volatile first half of the year. The year began with a strong showing in January, with transactions valued at N607.05bn.
Domestic investors dominated this period with N535.54bn in trades, while foreign participation stood at N71.51bn. However, foreign capital outflows exceeded inflows in January, a trend that continued into February.
Market momentum experienced a slight dip in February, with total transactions falling to N509.47bn. Domestic investors remained the driving force, but foreign trades further declined.
A major highlight of the half-year was a dramatic spike in March, which saw total transactions reach a peak of N1.12tn. This surge was notably driven by foreign investors, who contributed N699.89bn, or 62.74% of the month’s trades.
This “could be attributed to renewed interest from offshore investors driven by favourable exchange rate expectations and renewed macroeconomic optimism,” the report stated.
In April, the market saw a pullback with total turnover dropping to N482.04bn. However, activity rebounded in May, with the total transaction value increasing to N700.50bn.
May also marked a significant turning point, as it was “the first time in the year that inflows outpaced outflows” for foreign transactions, with N66.11bn in inflows versus N52.80bn in outflows.
The positive trend continued in June, with total equity trades climbing further to N778.65bn. Foreign transactions expanded by 17.16% to N139.31bn, representing the second-highest monthly foreign participation of the year. The report also pointed to a shift in domestic participation in June, as “retail participation fell by 18.62 per cent, from N337.46bn to N274.63bn, while institutional investors boosted their activity by 49.39 per cent, growing from N244.13bn in May to N364.71bn in June.”
Despite the strong performance, the report revealed a marginal net outflow of capital from foreign portfolio investors (FPIs). While foreign transactions in H1 2025 totaled N1.14tn, inflows amounted to N559.25bn, while outflows stood at N576.09bn. This “implies that more capital left the Nigerian market than came in, although the difference was marginal.”
NGX report also placed the current data in an 18-year historical context, noting the sustained dominance of domestic investors. In 2024, local participation accounted for 85% of total transactions, with foreign investors contributing 15%.
Finally, the report states that the N4.19tn equity turnover in H1 2025 “represents a notable improvement in investor confidence, with institutional investors taking a more active role and foreign participation showing signs of a rebound.”
However, the trend of higher FPI outflows than inflows indicates that “while interest is returning, Nigeria still faces capital repatriation concerns, likely influenced by currency volatility and external market conditions.”
