Foreign investors’ transactions on the Nigerian Exchange Limited (NGX) rose to N387.62 billion, hitting a six-month high in September 2025.
Pinnacle Daily’s review of the latest monthly NGX Domestic and Foreign Portfolio Investment Report has shown.
Analysis of the report revealed that transactions executed by foreign investors were highest at N699.89 billion in March but declined to N63.07 billion in April.
Improving slightly, it rose to N118.91 billion in May, to N139.31 billion in June, to N145.95 billion in July, to N171.81 billion in August, and now to N38762 billion in September, a high for six months.
This indicates that foreign investors’ participation on the NGX picked up by 23.91 per cent in September compared to August.
Rising inflows, declining outflows
On the one hand, foreign inflows inched up to N325.46 billion, also hitting a six-month high.
The foreign inflows were highest at N349.97 billion in March, fell to N26.64 billion in April, rose in May and June to N66.11 billion and N72.82 billion, respectively, dropped to N50.48 billion in July before improving to N95.14 billion in August.
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However, in September, foreign inflows jumped significantly by 242.09 per cent to N325.46 billion.
On the other hand, foreign investors were less unwilling to pull out their funds from the Nigerian market as foreign outflow dipped to N62.16 billion in September compared to N76.67 billion in August, N95.47 billion in July, and N66.49 billion in June.
The improved performance of foreign investors’ participation, analysts say, reflects recent domestic and global considerations, including the sweeping rate cuts by some central banks and stability in the Nigerian foreign exchange market.
Improving an investor-friendly environment
Pinnacle Daily reported in September that the United States (US) Federal Reserve and other central banks made decisions and lowered their benchmark interest rates.
A benchmark interest rate is the official rate that guides financial institutions on the proper cost of funds and lending to businesses, including micro, small, and medium enterprises.
In September, the Central Bank of Nigeria (CBN) moderated the benchmark interest rate to 27 per cent from 27.5 per cent.
Its decisions were anchored on the deceleration of headline inflation, relatively stable but fragile, stability in the foreign exchange market, and increased capital inflows, as a CBN surplus current account balance helps to broadly anchor inflation expectations.
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Other factors include the continued moderation in the price of premium motor spirit (PMS) and the notable increase in crude oil production.
All these have brought relative stability to the Nigerian economy. Specifically, headline inflation has decelerated for the sixth consecutive month to 18.02 per cent in September, and the naira has been gaining strength against the dollar, appreciating below N1,500/$1 in recent times.
Going by this level of stability, Nigeria is open to foreign investor attraction, the Head of Financial Institutions Rating at Agusto & Co, Ayokunle Olubunmi, told Pinnacle Daily.
He noted that the Fed’s and other central banks’ rate cuts mean that foreign investors will explore the Nigerian market.
“You know the rate at which we are now provides a lot of incentives for foreign inflows, both from the FPIs [foreign portfolio investments] and remittances,” the Director of the Monetary Policy Committee (MPC) Department at CBN, Victor Oboh, had said.
Total transactions jump to N1.62 trillion.
Every month, the NGX polls trading figures from market operators on their domestic and foreign portfolio investment (FPI)
flows.
As of 30 September, the report shows that total transactions, foreign and domestic, at the
NGX increased significantly by 78.5 per cent to N1.62 trillion (about $1.099 billion) in September from N908.38 billion (about $593 billion) in August.
The NGX attributed the sharp increase in trading value to a series of block trades executed during the month under review, which boosted overall market activity.
It shows that the total value of transactions executed by domestic investors outperformed transactions by foreign investors by about 52 per cent.
While foreign investors’ participation in the market has gradually improved in the last six months, domestic investors’ participation has been declining in the last six months.
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Pinnacle Daily reports that foreign investors’ participation, which stood at 13.08 per cent in April, has steadily risen to 23.91 per cent in September. But domestic investors’ participation has dropped to 76.09 per cent in September from 86.92 per cent in April after peaking at 91.96 per cent in July.
On the domestic front, institutional investors have continued to outperform retail investors, accounting for N955.26 billion of total domestic trades, representing a 143.13 per cent increase from the N392.90 billion recorded in August.
In contrast, retail investors’ participation fell 18.94 per cent to N278.57 billion from N343.67 billion in August.
Over 18 years, domestic transactions grew by 33.15 per cent to ₦4.73 trillion in 2024 from ₦3.56 trillion in 2007, while foreign transactions increased by 38.31 per cent to ₦852 billion within the same period from ₦616 billion.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
