Foreign investors’ participation in the first ten months of 2024 closed at N744 billion, far lower than N3.73 trillion transactions recorded by domestic investors within the same period.

The October 2024 edition of the Nigerian Exchange Limited (NGX) report showed that total transactions at the bourse increased marginally by 1.97 per cent from N493 billion (about $307.84 million) in September 2024 to N502.7 billion (about $300.05 million) in October 2024 with local investors patronage surpassing those by foreign investors.

In October 2024, the total value of transactions executed by domestic investors in October 2024 outperformed transactions executed by foreign investors by circa 82 per cent.

In one year, total domestic transactions accounted for about 89 per cent of the total transactions carried out in 2023, while foreign transactions accounted for about 11 per cent in the same period.

Similarly, the performance of the current month when compared to the performance in October 2023 (N220.94 billion) revealed that total transactions significantly increased by 127.5 per cent with institutional investors outperforming retail investors by 26 per cent.

A comparison of domestic transactions in the current month and the prior month (September 2024) revealed that retail transactions decreased by 40.9 per cent from N288.1 billion in September 2024 to N170.04 billion in October 2024.

However, the institutional composition of the domestic market increased by 74.5 per cent from N163.50 billion in September 2024 to N285.23 billion in October 2024.

Over 17 years, domestic transactions decreased by 10.94 per cent from N3.6 trillion in 2007 to N3.2 trillion in 2023; whilst foreign transactions also decreased by 33.3 per cent from N616 billion to N411 billion over the same period.

Reacting to the development, a member of the Exceptional Shareholders Association of Nigeria, Olugbosun Ariyo said the significantly lower foreign participation in Nigeria’s capital market (N744 billion) compared to domestic investors (N3.73 trillion) in the first ten months of 2024 highlights the impact of macroeconomic challenges, currency volatility, and policy uncertainty on investor confidence.

According to him, while domestic investors dominate due to growing local awareness, foreign investors remain cautious and deterred by concerns over exchange rate instability, fund repatriation, and global economic uncertainties.

“To attract foreign inflows, Nigeria must prioritize macroeconomic stability, currency reforms, and investor-friendly policies,” he said. Vice President of Highcap Securities, David Adonri, said FPI received a serious bashing under the disastrous administration of President Muhammadu Buhari when foreign investors’ funds were trapped in Nigeria.He pointed out that the resolution of that issue by the current administration is gradually making FPIs return.