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.
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.”
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.
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.
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%.
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.
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.
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.
