In October 2024, domestic transactions on the Nigerian Exchange recorded an impressive N3.73 trillion, marking 83.35% of total market activity. This figure highlights the sustained engagement of domestic investors within the market, especially as they took the lead in transactions during the month. The total market activity in October reached N502.73 billion, reflecting a 1.97% increase from the previous month’s N493.01 billion. Domestic transactions surged to N455.27 billion, which accounted for a substantial 90.56% of the total, indicative of a strong domestic presence that significantly outperformed foreign participation.
A closer examination of participant contributions within domestic transactions reveals that institutional investors were the primary force, with investments totaling N285.23 billion. Retail investors also played a notable role, contributing N170.04 billion. The figures reflect a slight increase of 0.81% from September, when domestic transactions amounted to N451.60 billion. Despite this incremental growth in domestic activity, it was still overwhelmingly more substantial than foreign investor actions, which remain considerably limited in comparison, underscoring the robust market involvement of local players in the Nigerian Exchange.
The year-on-year performance of the market showcased remarkable growth, with total transactions soaring by an astounding 127.54%, from N220.94 billion in October 2023. This trend elucidates the rising dominance of domestic investors and solidifies their role as the primary driving force behind market growth. Over the past decade, domestic transactions have become increasingly integral to market dynamics, with institutional investors particularly leading the charge, contributing significantly to this ongoing upward trajectory.
As of October 2024, total transactions on the Nigerian Exchange escalated to N4.47 trillion for the year-to-date, a notable increase from N2.93 trillion in 2023. Within this total, domestic transactions remained the cornerstone of market activity, accounting for N3.73 trillion. Despite foreign transactions showing some progress, with inflows reaching N33.31 billion and outflows at N14.15 billion—bringing total foreign transactions to N47.46 billion for October—foreign market presence only comprised 9.44% of overall activity for the month, thus reinforcing the dominance of domestic investors.
While foreign transactions displayed a 14.61% increase from September’s figures, foreign participation remained significantly less impactful than domestic involvement. Year-to-date, foreign transactions totaled N744.34 billion, or 16.65% of total market activity. This represented a continuation of the trend observed in 2023 when foreign participation stood at N291.38 billion. With domestic investors continuing to drive market engagement and performance, their influence is set against a backdrop of limited foreign inflows that, while showing signs of growth, have not reached the levels necessary to challenge the dominance of local investments.
Looking at longer-term patterns, the data illustrates a shifting landscape in market dynamics. An analysis spanning 17 years, from 2007 to 2023, reveals a decline in both domestic and foreign transactions; domestic transactions decreased by 10.94%, while foreign transactions dropped by 33.28%. In 2023, domestic activity comprised an impressive 89% of total market participation, further emphasizing the prevailing supremacy of local investors within the Nigerian Exchange. Despite fluctuations in foreign inflows, as seen with a sharp decline to N11.26 billion in September 2024—down from a high of N54.87 billion in May—domestic investors’ steadfast commitment continues to foster significant growth in the market, asserting their crucial role in shaping its future trajectory.
