(In Nigeria) Local Investors Dominate NGX Trades with ₦7.15 Trillion Contribution

Local investors, particularly institutional players, have driven trading activity on the Nigerian Exchange Limited (NGX), accounting for ₦7.15 trillion out of the ₦9 trillion total transactions between January 2024 and May 2025. This represents about 80 percent of the total market activity, while foreign investors contributed ₦1.85 trillion, or 20 percent.

According to NGX data, domestic transactions in 2024 totaled ₦4.735 trillion, with foreign trades at ₦852.03 billion. In the first five months of 2025, domestic transactions reached ₦2.418 trillion, and foreign transactions climbed to ₦996.03 billion, reflecting increased confidence from both local and foreign investors.

A notable spike in market activity occurred in December 2024, when total trades surged to ₦673.66 billion, with domestic investors contributing 90 percent of that figure. Institutional investors were the primary drivers, executing ₦406.04 billion in trades, nearly double the previous month. Retail activity also rose slightly.

In May 2025, total transactions rose to ₦700.50 billion, up 45 percent from April. Domestic investors again led with ₦581.59 billion, while foreign trades increased to ₦118.91 billion. Retail investors outperformed institutional players during the month, contributing ₦337.46 billion.

The NGX attributes the uptick in foreign investor participation to policy reforms and improved foreign exchange market conditions. Foreign inflows in May were ₦66.11 billion, slightly exceeding outflows of ₦52.80 billion.

Analysts note that domestic institutional investors, especially pension fund administrators and asset managers, have anchored market resilience. Highcap Securities CEO David Adonri credits post-2007 financial reforms and growing pension funds for the market's transformation and stability. He also highlighted improved investor confidence under the current administration, driven by relaxed capital controls and favorable macroeconomic policies.

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