Foreign investors stayed on the sidelines in November 2025, with equity trades on the Nigerian Exchange Limited remaining below N200bn for the second straight month. While foreign participation fell 13 per cent to N162bn, domestic investors dominated the market, driving total trades to N971bn and keeping the bourse vibrant. Institutional investors led the charge, outpacing retail activity and helping year-to-date transactions hit a robust N10.54tn, underscoring the growing strength of local capital in Nigeria’s stock market, TEMITOPE AINA writes
Foreign investors maintained a cautious posture in Nigeria’s equity market in November 2025, as total foreign equity transactions on the Nigerian Exchange Limited remained below N200bn for the second consecutive month, reinforcing signs of subdued offshore participation amid persistent macroeconomic and currency-related concerns.
According to data contained in the NGX Domestic and Foreign Portfolio Investment report, foreign equity trades declined by 13.17 per cent month-on-month to N162.04bn in November 2025, compared with N186.62bn recorded in October 2025. The sustained sub-N200bn performance over two consecutive months points to a prolonged moderation in foreign trading activity on the Exchange.
In dollar terms, foreign equity transactions dropped from about $131.27m in October to approximately $112.00m in November, reflecting both reduced trading volumes and the impact of exchange-rate movements at the Nigerian Autonomous Foreign Exchange Market.
Overall market activity declines month-on-month.
Total market transactions on the NGX also recorded a decline during the review period. Aggregate equity trades fell by 5.95 per cent to N971.18bn in November 2025, down from N1.03tn in October 2025.
Despite the month-on-month contraction, market activity showed strong year-on-year improvement. When compared with the N442.34bn recorded in November 2024, total transactions in November 2025 represented a 119.56 per cent increase, highlighting a broader recovery in trading volumes over the past year.
The pullback by foreign investors contrasted sharply with the sustained dominance of domestic investors, who continued to account for the bulk of transactions on the Exchange. In November 2025, domestic investors were responsible for 83.32 per cent of total equity trades, while foreign investors accounted for just 16.68 per cent.
Domestic transactions stood at N809.14bn in November, representing a marginal 4.35 per cent decline from the N845.96bn recorded in October 2025. Despite the slight reduction, domestic participation remained the primary driver of liquidity and market depth on the NGX.
A breakdown of domestic participation revealed divergent trends between retail and institutional investors. Retail investor transactions declined sharply by 16.21 per cent to N277.93bn in November, compared with N331.71bn in October, suggesting reduced activity among individual investors amid prevailing market uncertainties.
Conversely, institutional investors increased their participation by 3.30 per cent, with transactions rising to N531.21bn in November from N514.25bn in the preceding month. Institutional investors therefore outperformed retail investors by 32 per cent, underlining their growing role in sustaining market momentum in the face of weaker foreign flows.
On a year-to-date basis, total equity transactions on the NGX stood at N10.54tn as of November 2025, more than double the N4.91tn recorded in the corresponding period of 2024.
Domestic investors accounted for N8.35tn, representing 79.23 per cent, of total transactions in 2025 so far, while foreign investors contributed N2.19tn, or 20.77 per cent. This compares with 2024, when foreign participation stood at 15.98 per cent, indicating an improvement in cumulative foreign inflows despite the recent monthly slowdown.
Historical analysis over an 18-year period further underscores the rising importance of domestic capital in Nigeria’s equity market. Domestic transactions increased by 33.15 per cent from N3.56tn in 2007 to N4.73tn in 2024, while foreign transactions grew by 38.31 per cent from N616bn to N852bn over the same period.
In 2024, domestic investors accounted for approximately 85 per cent of total equity transactions, with foreign investors contributing about 15 per cent, a pattern that has largely persisted into 2025.
Market analysts attribute the sustained weakness in foreign equity trades to a combination of global risk aversion, portfolio rebalancing by offshore funds, and ongoing concerns around currency stability and capital repatriation. However, the strong presence of domestic institutional investors continues to provide a stabilising anchor for the market.
As the year approaches its close, attention will focus on whether improving macroeconomic conditions and policy clarity can revive foreign investor interest, or whether domestic capital will continue to underpin activity on the NGX in the near term.
