Despite robust year-on-year growth, Nigeria’s equities market witnessed a sharp contraction in trading activity in February 2025, as total transactions fell by 16.07 per cent from N607.05 billion in January to N509.47 billion, according to the Domestic and Foreign Portfolio Transactions Report.
The decline underscores a slowdown in market momentum, reflecting cautious sentiment among investors. However, on an annual basis, the market showcased remarkable resilience, with total transactions in February 2025 surging by 42.36 per cent compared to N357.88 billion recorded in February 2024.
This strong year-on-year performance underscores the deepening participation of local investors and sustained confidence in Nigeria’s capital markets.
A key highlight of the report is the overwhelming dominance of domestic investors, whose trading activity outpaced that of foreign investors by a staggering 84 per cent in February 2025.
Domestic transactions, while declining by 12.83 per cent from N535.54 billion in January to N466.82 billion in February, remained the primary driver of market activity.
Conversely, foreign investor participation suffered a dramatic slump, plunging by 40.36 per cent from N71.51 billion ($48.38 million) in January to N42.65 billion ($28.57 million) in February.
This sharp drop reflects persistent concerns over macroeconomic headwinds, foreign exchange volatility, and geopolitical uncertainties, which have continued to erode foreign investor confidence in Nigeria’s equities market.
Within the domestic segment, institutional investors maintained their dominance over retail investors, holding an eight per cent advantage in transaction value. However, both segments experienced a downturn in activity.
Retail transactions contracted by 19.76 per cent, declining from N267.35 billion in January to N214.51 billion in February, suggesting a cautious retreat by smaller investors amid prevailing market uncertainties.
Institutional transactions saw a more measured reduction of 5.92 per cent, slipping from N268.19 billion in January to N252.31 billion in February, as fund managers and institutional investors adjusted their market strategies in response to evolving economic conditions.
The report highlights a sustained increase in domestic investor participation over the past two decades. Domestic transactions surged by 33.15 per cent, climbing from N3.556 trillion in 2007 to N4.735 trillion in 2024, reflecting growing confidence and market engagement from local investors.
Meanwhile, foreign transactions expanded by 38.31 per cent within the same period, rising from N616 billion in 2007 to N852 billion in 2024.
However, foreign participation has remained relatively subdued compared to domestic investment. In 2024, domestic transactions accounted for 85 per cent of total market turnover, while foreign transactions contributed just 15 per cent.
