Domestic Investors Fuel N3.4tn Trading on NGX
Domestic investors have continued to dominate trading activity on the Nigerian Exchange Limited, with a total of N3.41tn worth of transactions recorded in the first five months of 2025, outpacing foreign participation.
According to the latest Domestic and Foreign Portfolio Investment Report released by the NGX recently, domestic transactions accounted for N2.42tn or 70.83 per cent of total equity trades between January and May 2025. In contrast, foreign portfolio investments stood at N996.03bn, representing just 29.17 per cent of the total.
The report also showed a notable uptick in investor activity in May 2025, with total equity transactions rising by 45.32 per cent to N700.50bn, up from N482.04bn in April. This surge was driven largely by domestic investors, who contributed N581.59bn in May, a 38.81 per cent increase from N418.97bn in April.
Foreign transactions also rose significantly in May, jumping by 88.54 per cent to N118.91bn from N63.07bn in April, reflecting renewed interest from offshore investors amid improving macroeconomic indicators and FX market reforms.
Foreign inflows accounted for N66.11bn, while outflows stood at N52.80bn.
Further analysis revealed that retail investors led the domestic segment, outperforming institutional investors by 16 per cent. Retail transactions rose sharply by 86.12 per cent from N181.31bn in April to N337.46bn in May. Institutional participation also grew modestly by 2.72 per cent to N244.13bn, up from N237.66bn in the previous month.
In terms of historical comparison, total equity transactions in May 2025 surged by 97.11 per cent when compared with the N355.38bn recorded in the same period of 2024. The year-to-date data also indicates that investor confidence has strengthened, with 2025 trades rising by over 51 per cent from the N2.25 tn reported in the first five months of 2024.
Over the past 18 years, domestic participation in the Nigerian capital market has risen by 33.15 per cent from N3.56 tn in 2007 to N4.74 tn in 2024. Similarly, foreign transactions have grown by 38.31 per cent from N616bn to N852bn in the same period.
The NGX attributed the growth in domestic trading to increased retail investor education, digitised access to the market, and improved confidence following monetary policy tightening and currency market reforms by the Central Bank of Nigeria.
