Domestic investors are tightening their grip on Nigeria’s equities market, accounting for 89.8 per cent of total transactions worth N13.2 trillion on the Nigerian Exchange (NGX) in the first eight months of 2026. Data from the NGX Domestic and Foreign Portfolio Participation report showed that local investors carried out transactions worth about N11.89 trillion, while foreign investors accounted for N1.35 trillion, representing 10.23 per cent of total activity.

The growing dominance of local investors comes despite a sharp slowdown in overall trading activity in August. Total transactions on the NGX fell 46.38 per cent month-on-month, from N2.36 trillion in July to N1.26 trillion in August. However, August’s performance was still stronger than the same period in 2025, with total transactions rising by 39.75 per cent from N908.4 billion recorded in August last year.

Both domestic and foreign investors reduced their activity during the month, but the decline was more pronounced among foreign participants. Domestic transactions dropped 45.98 per cent from N2.23 trillion in July to N1.2 trillion in August, while foreign transactions plunged 53.23 per cent from N132.6 billion to N62.03 billion. As a result, domestic investors accounted for about 95 per cent of NGX transactions in August, further highlighting their growing influence on the market.

Within the domestic segment, retail investors proved more resilient than institutional investors. Retail transactions declined by just 5.08 per cent, from N582.44 billion in July to N552.88 billion in August, while institutional transactions fell sharply by 60.39 per cent, from N1.65 trillion to N654.61 billion. Even with the decline, institutional investors remained more active than retail investors, recording transactions about eight per cent higher during the month.

The latest figures also point to a longer-term shift in the structure of Nigeria’s capital market. Domestic transactions rose 160.83 per cent, from N3.55 trillion in 2007 to N9.27 trillion in 2025, while foreign transactions increased by 329.9 per cent over the same period. Domestic investors accounted for about 78 per cent of NGX transactions in 2025, but their share has climbed to 89.77 per cent by August 31, 2026, leaving foreign investors with 10.23 per cent. The figures underline how increasingly important local investors have become to activity on the Nigerian equities market.

source: The guardian