Foreign investments hit N699.9b in March
Amid  mounting insecurity, persistent economic uncertainty and broader macroeconomic challenges, domestic investors have maintained a stronghold on trading at the Nigerian Exchange Limited (NGX), consistently outperforming their foreign counterparts. 
 
 The latest Domestic and Foreign Portfolio Investment report released by the NGX for March 2025 showed that domestic transactions accounted for approximately 85 per cent of the total market activity on the NGX in 2024, leaving foreign transactions with just 15 per cent.
 
Despite efforts to attract more foreign capital to the Nigerian capital market, recent data indicates that domestic participation remains dominant, reflecting both caution from foreign investors and local players’ resilience.
 
This significant disparity highlights a deep-rooted trend shaped by various factors, including volatile foreign exchange rates, concerns about capital repatriation, political risk and the broader economic climate, all of which continue to deter many foreign investors.
  
The trend extended into 2025 as total domestic transactions for the year-to-date (YTD) reached about N2.23 trillion.  In contrast, foreign transactions stand at approximately N814.05 billion, an indication that domestic investors, comprising both retail and institutional participants, remain the backbone of market activity, sustaining liquidity and helping to stabilise the bourse in the face of external pressures.
  
However, in a surprising twist, foreign investor activity saw a dramatic resurgence in March 2025. Foreign transactions jumped by a staggering 1,541 per cent from N42.65 billion (around $28.57 million) in February to N699.89 billion (approximately $455.41 million) in March.
  
In that same month, the value of transactions executed by foreign investors even surpassed those of domestic investors by 26 per cent. Operators say the spike could signal renewed confidence in Nigeria’s market fundamentals or a wave of short-term speculative plays, driven by opportunistic investors seeking high returns. Whether this momentum can be sustained, however, remains uncertain, as the same macroeconomic risks that suppressed foreign participation in previous years still loom large.
  
They emphasised that while this foreign interest is encouraging, it should not be mistaken for a long-term shift. Restoring lasting confidence among foreign portfolio investors will demand more than temporary rallies, noting that this will require meaningful and sustained reform.
  
These include improvements in the business climate, transparency in regulation and tangible progress in addressing structural weaknesses in the Nigerian economy.
  
Over an 18-year period, domestic transactions increased by 33.2 per cent from N3.6 trillion in 2007 to N4.7 trillion in 2024, while foreign transactions also increased by 38.3 per cent from N616 billion to N852 billion over the same period.