Foreign portfolio investors have made a powerful comeback to the Nigerian Exchange Limited, with foreign trades surging to an unprecedented N2.03trillion as of October 2025. This historic milestone marks the highest level of annual foreign participation recorded since 2007, signaling renewed global confidence in Nigeria’s capital market. The latest Domestic & Foreign Portfolio Investment Report released by the NGX confirms the market’s impressive rebound.
According to the report, foreign participation in 2025 has already outpaced every full-year figure in nearly two decades. Analysts attribute the surge to improved dollar liquidity, smoother fund repatriation processes, and policy adjustments that have eased cross-border transactions. The return of offshore investors reflects a stronger appetite for Nigerian equities, even amid lingering global economic uncertainties.
Historically, the last time foreign transactions came close to this year’s level was in 2014, when trades hit N1.54tn, and again in 2018 with N1.22tn. But foreign activity declined sharply after 2018, dropping below N1tn annually as domestic investors took over during prolonged foreign investor exits. The 2025 resurgence is therefore a major turning point, with foreign investors now holding 21.18% market share—up from 16.65% last year—while domestic participation moderated to 78.82%.
Year-on-year, foreign investor activity jumped by a remarkable 172.37%, rising from N744.34bn in October 2024 to N2.03tn in 2025. Inflows also exceeded outflows, with N1.12tn entering the market compared to N909.56bn in outflows, a positive sign for market stability. Overall investor participation on the NGX climbed to N9.57tn, more than double the N4.47tn recorded in the same period last year, despite a month-on-month decline caused by the absence of the large block trades seen in September.
Meanwhile, the broader market is experiencing a bearish week, with about N1.79tn wiped off market capitalisation due to heavy sell-offs and profit-taking, primarily driven by institutional investors. Although retail activity rose by 19.08% month-on-month, institutional investors still dominate the market despite a significant decline in their October trading volume. With volatility expected to continue, analysts say foreign investors will be watching Nigeria’s macroeconomic direction closely as the year winds down.
source: Punch