Between January and June 2025, foreign investors divested equities worth N576.09 billion on the Nigerian Exchange, marking an 84.97% increase compared to N311.41 billion in the same period in 2024.
These outflows surpassed foreign inflows, which totaled N559.25 billion, resulting in a net negative foreign portfolio balance of N16.84 billion for the six months. According to the NGX’s June 2025 Domestic and Foreign Portfolio Investment Report, foreign trading activity intensified relative to the previous year.
Total foreign transactions amounted to N1.14tn in H1 2025—more than double the N540.48bn recorded in H1 2024. Economists link the rise in outflows to global market instability stemming from U.S. policy shifts under President Donald Trump, alongside attractive yields in Nigerian T-bills, which prompted profit-taking and capital flight.
On the domestic front, investors were responsible for N3.06tn in trades during the same period, making up 72.92% of overall market activity. This represents a 41.5% increase from N2.17tn recorded in H1 2024. Within this group, institutional investors contributed N1.59tn, while retail investors accounted for N1.47tn.
The near-equal split between retail and institutional investors signals balanced domestic engagement during the half-year, though recent data suggest that institutions have begun to take a lead. In total, the value of all transactions on the Exchange reached N4.19tn, up 60.98% from N2.60tn in the first half of 2024.
While the increase in transaction volume is notable, it also brings to light concerns about capital quality—particularly the surge in foreign outflows and softening retail participation. Monthly data points to erratic investor behavior, with significant swings in both foreign and domestic trades.
