Domestic investors have tightened their grip on the Nigerian equities market, accounting for 89.8 per cent of total transactions valued at N13.2 trillion in the first eight months of 2026, according to data by the Nigerian Exchange Limited (NGX).

The latest NGX Domestic and Foreign Portfolio Participation report showed that domestic investors accounted for approximately N11.89 trillion of transactions between January and August, while foreign investors accounted for N1.35 trillion, representing 10.23 per cent.

The figures highlight the growing dominance of local investors in the Nigerian equities market, even as overall trading activity fell sharply in August following the strong performance recorded in July.

On a monthly basis, total transactions on the NGX declined by 46.38 per cent from N2.36 trillion in July to N1.26 trillion in August.

Despite the month-on-month decline, August trading remained higher than the corresponding period of last year, with total transactions rising by 39.75 per cent from N0.9084 trillion in August 2025.

The decline in August was driven by both domestic and foreign investors, although domestic investors continued to account for the overwhelming share of trading activity.

Domestic transactions fell by 45.98 per cent from N2.23 trillion in July to N1.2 trillion in August, while foreign transactions declined by 53.23 per cent from N0.1326 trillion to N0.06203 trillion during the same period.

The NGX data showed that domestic investors accounted for about 95 per cent of total transactions in August, leaving foreign investors with about five per cent.

Within the domestic market, retail investors recorded a smaller decline in activity than institutional investors during the month.

Retail transactions decreased by 5.08 per cent from N0.58244 trillion in July to N0.55288 trillion in August. Institutional transactions, however, fell sharply by 60.39 per cent from N1.65263 trillion in July to N0.65461 trillion in August.

Despite the decline, institutional investors continued to record higher transactions than retail investors in August, with institutional transactions exceeding retail transactions by about eight per cent.

The latest figures also showed the significant increase in domestic participation in the equities market over the longer term.

Over the 19-year period from 2007 to 2025, domestic transactions increased by 160.83 per cent from N3.55 trillion in 2007 to N9.27 trillion in 2025.

Foreign transactions also increased over the same period, rising by 329.9 per cent from N0.6156 trillion in 2007 to N2.64 trillion in 2025.

Domestic investors accounted for about 78 per cent of total transactions carried out on the NGX in 2025, while foreign investors accounted for about 22 per cent.

However, the balance has shifted further in favour of domestic investors in 2026, with local investors accounting for 89.77 per cent of transactions as at August 31.

Foreign investors also accounted for the remaining 10.23 per cent of year-to-date transactions, indicating a significant decline in their share of trading activity compared with the previous year.