NGX Domestic Transactions Hit N5.46tn in Eight Months as Local Investors Dominate Nigerian Equities Market
Domestic transactions on the Nigerian Exchange Limited (NGX) surged to N5.46 trillion in the first eight months of 2025, highlighting the growing influence of local investors in Nigeria’s equities market. While overall trading activity showed signs of slowing on a monthly basis, domestic capital continued to drive the lion’s share of market activity.
Data from the NGX monthly trading report revealed that domestic trades accounted for nearly 79% of total equity transactions as of August 31, 2025. Foreign transactions, in comparison, stood at N1.45 trillion, representing just 21% of total trades. Analysts say this underscores a persistent reliance on domestic investors to sustain activity on Nigeria’s bourse.
However, August trading figures reflected a slowdown, with total transactions dropping to N908.38 billion—a nearly 50% decline from July’s N1.815 trillion. The dip was largely due to a sharp fall in domestic trades, which fell 55.87% from N1.669 trillion in July to N736.57 billion in August. Experts attribute the decline to the absence of block trades, which had significantly boosted trading volumes the previous month.
Interestingly, foreign investor activity bucked the trend. Transactions from overseas rose 17.72% month-on-month, climbing from N145.95 billion in July to N171.81 billion in August. Foreign portfolio participation as a share of total equity trades increased from 8.04% to 18.91%, signaling renewed interest from international investors despite global market uncertainties.
Year-to-date figures highlight a strong upward trajectory for both domestic and foreign transactions. Domestic trades grew nearly 94% from N2.82 trillion in 2024 to N5.46 trillion in 2025, while foreign portfolio investments more than doubled to N1.45 trillion. Analysts interpret these trends as a sign of growing confidence in Nigeria’s stock market, although the monthly decline in domestic trades underscores the market’s sensitivity to large block trades and short-term volatility.
source: punch