Nigeria’s capital market is increasingly being driven by homegrown investors, with domestic participants accounting for N17.7 trillion worth of stock transactions over the last 18 months. Fresh data from the Nigerian Exchange Limited (NGX) shows that between January 2025 and June 2026, local investors contributed an impressive 82.31 percent of the N21.5 trillion total market turnover, highlighting a significant shift in the structure of the nation’s equities market. The figures underscore growing confidence among Nigerian institutional and retail investors despite persistent global economic uncertainty.
According to the NGX Domestic and Foreign Portfolio Investment reports, domestic investors traded N17.724 trillion, while foreign investors recorded N3.809 trillion during the review period. This means that for every N100 traded on the exchange, Nigerian investors accounted for approximately N82, leaving foreign investors with just N18. The widening gap reflects the increasing influence of local capital in sustaining market activity and reducing the exchange’s dependence on foreign portfolio inflows.
The trend became even more pronounced in the first half of 2026. Between January and June, domestic transactions climbed to N8.44 trillion, representing 87.93 percent of total market turnover, while foreign investors accounted for only N1.16 trillion, or 12.07 percent. Although foreign participation showed signs of recovery in 2025, its momentum weakened this year as local investors accelerated their trading activities and continued to fuel the rally in the equities market.
Market analysts say the growing dominance of domestic investors is a healthy sign for Nigeria’s financial markets. Over the 18-month period, local investors outpaced foreign participants by N13.915 trillion, with transaction volumes nearly 4.7 times higher than those of overseas investors. Pension fund administrators, institutional investors, asset managers, and retail traders have emerged as key drivers of liquidity, helping absorb new equity offerings and providing stability amid cautious foreign investment into emerging markets.
Commenting on the development, former President of the Ibadan Zone Shareholders Association of Nigeria, Eric Akinduro, described the trend as a major milestone for the country’s capital market. He noted that Nigeria’s stock market was once heavily dependent on foreign investors, whose sudden exits often triggered volatility and selling pressure. According to him, stronger domestic participation will enhance the market’s resilience, encourage long-term growth, and create a more sustainable investment environment as local investors are generally more committed to supporting the economy through varying business cycles.
source: The guardian
