The Nigerian Exchange Limited has reported a significant 118.95% month-on-month increase in total transactions on its bourse, driven by a surge in foreign portfolio investments.
This was revealed in the March 2025 Foreign Portfolio Investment Report, recently published by the Exchange, based on data from market operators.
According to the report, total transactions on the nation’s bourse more than doubled, rising sharply from N509.47 billion in February 2025 to N1.115 trillion in March, indicating increased investment activity.
When converted to U.S. dollars, the value of transactions reached about $725.86 million in March 2025, a notable increase from $341.36 million recorded in the previous month.
This growth was largely driven by strong Foreign Portfolio Investment (FPI) flow, with data showing that foreign participation exceeded that of domestic investors by 26% at N699.8 billion—a clear indication of sustained international confidence in the Nigerian capital market.
Foreign surge, domestic decline
Foreign portfolio investments took the lead in March, accounting for 62.74% of total market transactions—equivalent to N699.8 billion out of a total of N1.115 trillion.
- This put foreign investments well ahead of domestic inflows, which accounted for just 37.26% (N415.6 billion)—a 26% gap and a sharp reversal from the previous month, when domestic investors dominated the market.
In February, domestic portfolio investments contributed a striking 91.63%, amounting to N466.8 billion out of N509.4 billion in total transactions.
Foreign investment flows, which had dropped to just N42.65 billion in February—a 40.35% decline from January—rebounded dramatically in March to a staggering N699.8 billion.
- This sharp increase in foreign participation not only reversed the decline seen in February 2025 but also played a central role in more than doubling total market transactions to N1.115 trillion.
Foreign inflow and outflow; long-term view
In terms of flow, both foreign inflows and outflows increased significantly in March.
- Foreign inflows rose to N349.97 billion in March, up sharply from N18.05 billion in February. February’s figure represented a 29.7% drop compared to January’s N25.6 billion.
- Foreign outflows also increased, reaching N349.92 billion in March, up from N24.6 billion in February. The February figure marked a 46.3% decline from January’s N45.8 billion.
This data suggests that foreign investor activity in March was nearly balanced, resulting in a modest net inflow of N50 million, with total foreign flows reaching N699.8 billion up 118.95% month-on-month.
Looking at the long-term trend, the NGX reports that the domestic market grew from N3.5 trillion in 2007 to N4.7 trillion in 2024, while foreign investments rose from N616 billion to N852 billion over the same period.
Continued increases in foreign portfolio investment flows could signal a shift in this historical trend.