Foreign investor activity on the Nigerian Exchange Limited fell sharply in January 2026, with total foreign transactions dropping by a dramatic 75.08 percent compared to December figures. Data from the NGX Group showed that foreign participation declined from ₦0.458 trillion to ₦0.114 trillion, signaling a quieter start to the year for international market players.
Rather than viewing the decline as a capital flight, market analysts say the drop reflects a return to normal trading levels after an unusually strong December. The previous month’s figures had been boosted by large block trades that significantly inflated foreign transaction volumes — trades that were absent in January.
Overall market activity also cooled during the period. Total transactions on the exchange fell by 37.55 percent month-on-month, declining from ₦1.38 trillion in December 2025 to ₦0.862 trillion in January 2026. Despite the slowdown, the market remains in a stronger position compared to the same period last year, with total transactions still 41.99 percent higher than the ₦0.607 trillion recorded in January 2025.
With foreign investors stepping back, domestic investors strengthened their dominance, accounting for 86.76 percent of total market participation. Retail investors showed growing confidence, increasing their trades by 12.92 percent to ₦0.359 trillion. Meanwhile, institutional domestic investors reduced activity by 35.73 percent to ₦0.387 trillion but still held a slight edge, maintaining 52 percent of domestic participation.
Long-term trends suggest resilience in Nigeria’s capital market. Between 2007 and 2025, domestic transactions surged by 160.83 percent, while foreign transactions grew even faster by 329.87 percent. In 2025 alone, domestic investors accounted for 78 percent of total market activity, reinforcing their central role in sustaining momentum even during periods of reduced foreign inflows.
source: punch