Capital Market Turnover Hits N10trn
Turnover at the Nigerian stock market has risen to a record high of N10 trillion, following foreign and domestic investors’ continued stake in the nation’s macroeconomic outlook and earnings potential of quoted companies.
Trading data released yesterday by the Nigerian Exchange (NGX) indicated that total transactions at the Exchange have doubled this year to reach an all-time high of N9.57 trillion within the first 10 months of trading. This represented an increase of 114.1 per cent over N4.47 trillion recorded in the comparable period of 2024.
The report, which detailed transactions by domestic and foreign portfolio investors, showed that activities at the Nigerian market were substantially driven by rising foreign transactions, with foreign investors now accounting for more than one-fifth of activities at the market.
Foreign portfolio investors (FPIs) account for 21.2 per cent of total transactions as against 16.7 per cent in the comparable period of previous year.
Total foreign transactions have nearly tripled this year, totalling N2.03 trillion by October 2025; 172.45 per cent above N744.3 billion recorded in the corresponding period of 2024.
A breakdown of foreign transactions showed a stronger preference for the Nigerian market, with a higher retention ratio as FPIs were buying more than they were selling in the traditional two-way market system.
Total FPI inflows stood at N1.118 trillion by October 2025, representing an increase of 225 per cent above N344 billion recorded by October 2024. FPI outflows doubled by 127.3 per cent from N400 billion in 2024 to N909.6 billion in 2025.
Compared to the trading situation in 2024, when the country had an FPI deficit of N56 billion, FPI surplus stood at N209 billion in 2025, underlining the comparatively higher inflows against outflows.
Total transactions by domestic investors during the 10 months increased to N7.54 trillion in 2025 as against N3.73 trillion recorded in 2024. The increase was due to an upsurge in activities by retail and institutional investors.
“Institutional investors’ turnover jumped to N4.6 trillion compared with N1.8 trillion in the corresponding period of 2024. Retail investors’ transactions rose to N2.9 trillion in 2025 from N1.9 trillion in 2024.
NGX noted that domestic transactions have grown by 33.15 per cent over the last 18 years, from N3.56 trillion in 2007 to N4.74 trillion in 2024. Foreign transactions increased by 38.31 per cent over the same period, rising from N616 billion to N852 billion.
Experts have attributed the all-time scramble for Nigerian investments to the improvement in the country’s macroeconomic outlook.
The NGX attributed the bullish trading at the market to broad economic reforms and improving investor sentiment.
According to NGX, the rally at the market coincides with a broader policy reset that has redefined Nigeria’s economic outlook, as measures such as the liberalisation of the naira, the removal of fuel subsidies, and closer coordination between fiscal and monetary authorities have begun to restore a degree of macroeconomic stability, even as inflation remains elevated.
Group Managing Director (GMD), Nigerian Exchange Group (NGX Group) Plc, Mr Temi Popoola, said much of the market’s resilience could be traced to a “wave of coordinated reforms” that have rebuilt confidence in the country’s financial architecture.
He said: “The strength we’ve seen in the market has been driven largely by reforms, from the President’s economic agenda to decisive actions by the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), PENCOM, and other regulators. These efforts have created the right foundation for investor confidence and renewed market activity”.
Popoola, who spoke during a panel discussion on “Nigeria’s Economic Journey: Crisis, Recovery, and Risk” at the Financial Times Africa Summit 2025 in London, underscored the market’s underscored renewed investor confidence and the resilience of Nigeria’s capital markets amid a shifting macroeconomic environment.
Director General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said the signing of the Investments and Securities Act 2025 by President Bola Tinubu was a turning point for governance and regulatory transparency in the market.
He said: “The new law was crafted to reflate the economy by providing clarity, certainty, and discipline in our markets,” Agama said. “Robust regulation has been central to restoring market integrity and investor trust, providing the transparency required to anchor long-term capital formation in Nigeria”.
Managing Director, Highcap Securities Limited, David Adonri, said the rise in retail activity is a positive indicator for market resilience.
He said: “The growth in retail participation at a time when institutional and foreign investors are slowing down shows that local investors are becoming more confident and more informed. It reflects the impact of technology, easier access and sustained market education. Retail investors are gradually becoming a stabilising force in our market”.