Domestic Investors Drive NGX Transactions to N1.94 Trillion as Market Activity Surges 177%
Trading activities on the Nigerian Exchange Limited (NGX) maintained strong momentum in May 2026, with total market transactions climbing to N1.94 trillion as domestic investors continued to dominate the market. The latest NGX Domestic and Foreign Portfolio Participation Report showed that total transactions rose by 7.79 per cent from N1.8 trillion recorded in April, highlighting growing confidence among local investors despite subdued foreign participation.
The performance also reflected a remarkable 177.42 per cent increase compared to the same period last year, underscoring the rapid expansion of activity on the Nigerian stock market. Domestic investors remained the backbone of the exchange, accounting for approximately 91 per cent of total transactions. Their combined trades increased by 13.2 per cent to N1.8 trillion in May, reinforcing their critical role in sustaining liquidity and driving market performance.
While local participation strengthened, foreign investors scaled back their activities during the month. Foreign transactions dropped by 25.9 per cent to N183.6 billion from N247.7 billion in April. The decline suggests that overseas investors remain cautious amid global economic uncertainties, leaving domestic participants to shoulder a larger share of market activity.
Within the domestic segment, institutional investors continued to outpace retail investors by a significant margin. Institutional transactions rose by 18.6 per cent to N1 trillion, while retail trades increased by 6.22 per cent to N726.3 billion. As a result, institutional investors accounted for nearly 59 per cent of domestic transactions, maintaining an 18-percentage-point lead over retail investors and demonstrating their growing influence on market direction.
The NGX report also highlighted the long-term growth of Nigeria’s capital market. Domestic transactions have risen by more than 160 per cent from N3.6 trillion in 2007 to N9.27 trillion in 2025, while foreign transactions expanded by nearly 330 per cent over the same period. For the first five months of 2026, domestic investors accounted for 87.67 per cent of total market turnover, confirming their increasing dominance and signaling a shift toward a more locally driven market as Nigeria’s capital market continues to evolve.
source: The guardian