Trading activity on the Nigerian Exchange Limited (NGX) soared significantly in March 2026, with total transactions rising by 13.1 per cent to N1.74 trillion from N1.54 trillion recorded in February.

The uptick signalled improved investor participation and stronger liquidity conditions in the equities market.

The latest NGX Domestic and Foreign Portfolio Investment Report showed that the increase also represents a 56.38 per cent year-on-year increase when compared to N1.116 trillion posted in March 2025.

The growth in market turnover was largely driven by a sharp rebound in foreign portfolio investment as foreign transactions surged by 107.74 per cent to N288.82 billion (about $208.28 million) in March from N139.03 billion (about $101.97 million) in February, reflecting renewed offshore interest in Nigerian equities.

Analysts attributed the strong recovery in foreign flows to improving market sentiment, attractive equity valuations, and positioning by global investors seeking exposure to high-yield frontier markets.

However, domestic investors continued to dominate trading on the Exchange, outperforming their foreign counterparts by about 66 per cent in total transaction value despite the resurgence in foreign participation.

Further breakdown of the report showed that domestic transactions increased modestly by 3.72 per cent to N1.4556 trillion in March from N1.4033 trillion in February, indicating that local investors remained the backbone of market activity even as external participation strengthened.

Institutional investors accounted for the larger share of transactions and outperformed retail investors by 26 per cent, reinforcing their dominant role in market liquidity.

Institutional trades rose by 6.95 per cent to N914.23 billion in March from N854.83 billion in the previous month, supported by increased activity from fund managers, pension funds and other large asset allocators.

In contrast, retail participation declined slightly by 1.3 per cent to N541.37 billion, compared to N548.5 billion in February, suggesting a more cautious stance among individual investors amid prevailing market conditions.

Over nineteen years, domestic transactions have grown significantly by 160.83 per cent from N3.556 trillion in 2007 to N9.275 trillion in 2025, while foreign transactions expanded even more rapidly by 329.87 per cent from N616 billion to N2.648 trillion over the same period.

In terms of market structure, domestic investors maintained a commanding lead in 2025, accounting for about 78 per cent of total transactions, while foreign investors contributed 22 per cent, underscoring the resilience and central role of local capital in sustaining market activity.

Cumulative data for 2026 further reinforces this trend, with total domestic transactions estimated at approximately N3.607 trillion, compared to about N542 billion recorded by foreign investors.