Analysts link rise to improved investor confidence, FX stability, and Tinubu’s economic reforms…..
Nigeria’s foreign portfolio inflows through the stock market have surged by a remarkable 845.9 percent in two years, rising to ₦1.03 trillion as of September 2025, compared to ₦108.93 billion recorded in the same period of 2023.
According to the latest report on “Domestic and Foreign Portfolio Participation in Equity Trading” released by the Nigerian Exchange Limited (NGX), foreign investment outflows also grew sharply by 443.6 percent, reaching ₦810.39 billion in 2025 from ₦149.09 billion in 2023.
This brought total foreign transactions comprising both inflows and outflows to ₦1.84 trillion, up 613.4 percent from ₦258.02 billion in 2023.
Domestic Investors Still Dominate
Despite the strong foreign comeback, domestic investors continued to dominate market activity. Total transactions by both foreign and local investors jumped 214.8 percent in two years to ₦8.53 trillion from ₦2.71 trillion.
Of that figure, domestic investors accounted for ₦6.69 trillion, marking a 172.6 percent rise from ₦2.45 trillion in 2023, outperforming foreign transactions by over 2,400 percent.
Analysts say the numbers reflect renewed confidence in the Nigerian capital market following reforms introduced by the administration of President Bola Ahmed Tinubu.
Analysts Attribute Growth to FX Stability, Economic Reforms
Investment banker and stockbroker Tajudeen Olayinka said the figures underscore the impact of improved foreign exchange stability, rising reserves, and declining inflation.
“The rising foreign portfolio inflows show growing stability in the FX market and give credence to the adjustment program introduced in 2023,” Olayinka said.
“Though the reforms were painful, they were necessary to address long-standing macroeconomic imbalances.”
He added that while the surge in foreign inflows bodes well for the short term, the government must address lingering structural issues to prevent future capital reversals caused by external shocks.
“Until inflation and interest rates fall to single digits, we cannot begin to celebrate,” he warned.
Investor Confidence Returns to the Capital Market
Also commenting, David Adonri, Vice Executive Chairman of Highcap Securities Limited, noted that the reversal from higher outflows in 2023 to stronger inflows in 2025 demonstrates restored investor confidence.
“In 2023, foreign portfolio investment outflow exceeded inflow, showing weak confidence. But by 2025, inflows have clearly surpassed outflows, a sign that confidence has returned,” Adonri said.
He added that the capital market’s impressive performance reflects this trend, with the All-Share Index (ASI) soaring from about 50,000 points in 2023 to over 155,000 points as of 2025.
“More capital has been formed through new issues in the past two years than in the previous decade. The massive inflow and retention of foreign investment have stabilized the FX market and boosted investor wealth with multiplier effects on the economy,” he added.
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