NGX Foreign Trades Plung by 75%

Foreign investor participation on the Nigerian Exchange (NGX) took a sharp dive in January 2026, plunging by 75.08% in just one month.

Data from the Domestic and Foreign Portfolio Investment Report revealed that foreign transactions fell from N0.458 trillion in December to N0.114 trillion.
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Market analysts are not interpreting this as a permanent exit of capital. According to the report, the drop was a normalization following an unusually busy December, stating, “This sharp decline was primarily due to the absence of the block trades that had substantially boosted foreign transaction figures.”
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The broader market also experienced a “cooling” period. Total monthly transactions at the bourse dropped by 37.55%, sliding from N1.380 trillion at the end of 2025 to N0.862 trillion in January 2026.
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Despite the monthly dip, the NGX is performing better than it did this time last year. A year-on-year comparison shows that total transactions actually increased by 41.99% compared to the N0.607 trillion recorded in January 2025.
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Local players have stepped in to fill the gap left by international investors. Domestic participants now dominate the market, accounting for 86.76% of total activity, significantly outperforming foreign transactions by roughly 74%.
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Inside the domestic segment, retail investors showed increased confidence. While institutional domestic participation fell by over 35%, retail transactions rose by 12.92% to reach N0.359 trillion.
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Even with the decline in institutional volume, these large-scale players maintained a slight edge. They held a 52% share of the domestic market, outperforming individual retail investors by a slim four percent margin.
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Looking at the long-term trend, the Nigerian capital market remains on a massive growth trajectory. Since 2007, domestic transactions have surged by 160.83%, while foreign transactions have grown by a staggering 329.87% over the same 19-year period.