…Foreign inflows surge, retail participation rises, and reforms reshape Africa’s largest economy

Nigeria’s capital market is attracting unprecedented global attention as turnover on the Nigerian Exchange (NGX) surges to an all-time record of N10 trillion, signalling renewed confidence in Africa’s biggest economy and its ongoing structural reforms.

Fresh trading data released by the NGX shows that total market transactions doubled within the first 10 months of 2025, rising to N9.57 trillion, a sharp 114.1% increase from N4.47 trillion recorded in the same period of 2024. The uptick reflects both foreign appetite for Nigerian assets and sustained domestic investor confidence—two pillars critical to long-term market stability.

Foreign Investors Deepen Exposure as Global Markets Shift

The NGX report indicates that foreign portfolio investors (FPIs) are returning to Nigeria at historic levels.
Foreign participation climbed to 21.2%, up from 16.7% in 2024, while total foreign transactions nearly tripled to N2.03 trillion.

This surge in global capital mirrors a broader international rebalancing, as investors diversify away from advanced markets and seek yield in emerging economies with improving fundamentals.

By October 2025:

• FPI inflows jumped to N1.118 trillion, up 225% from N344 billion in 2024.

• FPI outflows rose to N909.6 billion, yet remained well below inflows.

• Nigeria moved from a N56 billion FPI deficit in 2024 to a N209 billion surplus in 2025.

The positive balance signals renewed trust in Nigeria’s regulatory direction and economic reforms—an important signal to global investors weighing frontier and emerging market opportunities.

Domestic Investors Anchor Market Stability

Domestic investors remained the dominant force, executing N7.54 trillion worth of transactions—up from N3.73 trillion last year.
Institutional investors led the charge with N4.6 trillion, while retail investors surged to N2.9 trillion, reflecting deeper financial literacy, improved digital access, and shifting savings habits.

Financial experts say this expanding retail base mirrors global trends in India, Brazil, and Southeast Asia, where small investors have increasingly become stabilizers in volatile markets.

Reforms Power Market Confidence

The NGX attributes the bullish momentum to Nigeria’s sweeping macroeconomic resets—currency liberalisation, fuel subsidy removal, and tighter coordination between fiscal and monetary regulators.

Speaking at the Financial Times Africa Summit 2025 in London, NGX Group GMD Temi Popoola said the renewed investor confidence is a product of “a wave of coordinated reforms” across the Central Bank, SEC, PENCOM, and other regulators.

“The strength we’ve seen in the market has been driven largely by reforms… These efforts have created the right foundation for investor confidence and renewed market activity,” Popoola said.

The signing of the Investments and Securities Act 2025 is also seen as a global benchmark for transparency.

SEC Director General, Dr. Emomotimi Agama, highlighted that the law was crafted to “reflate the economy by providing clarity, certainty, and discipline,” noting that strong regulation is essential for anchoring long-term capital formation.

Retail Participation: A New Stabilising Force

Highcap Securities MD, David Adonri, said the surge in local participation—even as some foreign investors remain cautious—reflects rising financial literacy and market accessibility enabled by digital platforms.

“Retail investors are becoming more confident and more informed… They are gradually becoming a stabilising force in our market,” he said.

Nigeria Repositions for Global Capital

With turnover at an all-time high, foreign inflows strengthening, and technology drawing in new retail investors, Nigeria is repositioning itself as one of the most attractive emerging markets globally.

For global investors seeking growth outside traditional markets, Nigeria’s blend of reforms, liquidity, and demographic strength is shaping a compelling long-term narrative.