Paragraph 1: Surge in Foreign Portfolio Investment on the Nigerian Exchange Limited
The Nigerian Exchange Limited (NGX) witnessed a significant surge in foreign portfolio investment (FPI) during May 2025, recording an impressive 88.54% increase to reach N118.91 billion, compared to N63.07 billion in April 2025. This upswing in FPI signals renewed interest from international investors in the Nigerian stock market. The NGX’s latest Domestic and Foreign Portfolio Investment Report reveals that both foreign inflows and outflows contributed to this growth. Foreign inflows climbed to N66.11 billion in May, a substantial jump from N26.64 billion in April. Similarly, foreign outflows rose to N52.80 billion in May, up from N36.43 billion the previous month. This simultaneous increase in both inflows and outflows suggests a dynamic market with active participation from foreign investors, encompassing both buying and selling activities.
Paragraph 2: Overall Trading Activity and Dominance of Domestic Investors
The overall trading activity on the NGX also experienced robust growth in May 2025. Total transactions reached N700.50 billion, marking a 45.32% increase from N482.04 billion in April 2025. This surge in trading activity further underscores the growing interest in the Nigerian stock market. Comparing May 2025 to the same month in the previous year reveals an even more dramatic increase of 97.11%, with total transactions reaching N355.38 billion in May 2024. While foreign investment experienced a notable increase, domestic investors continued to dominate trading activity on the NGX. They accounted for N581.59 billion, representing 83.02% of the total transaction value in May 2025. Foreign investors, while contributing to the overall growth, accounted for the remaining N118.91 billion or 16.98% of the total transaction value.
Paragraph 3: Retail Investors Drive Domestic Market Growth
Within the domestic market, retail investors emerged as the key drivers of growth, outpacing institutional investors in May 2025. Retail participation saw a remarkable 86.12% increase, reaching N337.46 billion compared to N181.31 billion in April 2025. This surge in retail investment activity highlights the increasing participation of individual investors in the Nigerian stock market. While institutional investment also experienced growth, it was more modest at 2.72%, rising from N237.66 billion in April to N244.13 billion in May 2025. This difference in growth rates suggests that retail investors played a more significant role in driving the overall increase in domestic trading activity during this period.
Paragraph 4: Year-to-Date Performance and Market Composition
Analyzing the cumulative year-to-date data up to May 2025 reveals a consistent trend of domestic dominance in the Nigerian stock market. Domestic transactions reached N2.42 trillion, representing 70.83% of total trades. Foreign transactions, while still substantial, amounted to N996.03 billion, or 29.17% of total trades. Comparing these figures to the same period in 2024 shows significant growth in both domestic and foreign participation. Domestic transactions totaled N1.79 trillion in the first five months of 2024, while foreign trades amounted to N458.29 billion. This year-on-year growth indicates a positive trajectory for the Nigerian stock market, attracting both domestic and international investors.
Paragraph 5: Data Reliability and Market Transparency
The NGX emphasizes the reliability and comprehensiveness of its Domestic and Foreign Portfolio Investment Report. The data used in the report is collected from 100% of active trading license holders, ensuring a complete and accurate picture of equity trading activity on the exchange. This commitment to data integrity and transparency strengthens the credibility of the report and provides valuable insights into market trends and investor behavior. By capturing data from all active participants, the NGX offers a robust and reliable view of the market dynamics, enabling informed decision-making for investors and stakeholders.
Paragraph 6: Continued Domestic Dominance and Market Outlook
Reports from reputable financial news sources, such as The PUNCH, corroborate the NGX’s findings, confirming the continued dominance of domestic investors in the Nigerian stock market. According to these reports, domestic investors accounted for N3.41 trillion worth of transactions in the first five months of 2025, significantly outpacing foreign participation. This sustained dominance of domestic investors highlights the growing confidence in the Nigerian economy and the increasing accessibility of the stock market to local investors. The overall positive trend in trading activity, coupled with the increasing participation of both domestic and foreign investors, suggests a promising outlook for the Nigerian stock market. The continued growth in retail investment, in particular, signifies a broadening investor base and the potential for sustained market expansion.
