Foreign portfolio investments showed strong signs of recovery in May 2025, rising by 88.5 per cent to N118.91 billion from N63.07 billion in April, according to the latest Domestic and Foreign Portfolio Report from the Nigerian Exchange.
The rebound was attributed to moderating fixed-income yields and improved investor confidence in the equities market.
Total transactions on the NGX surged by 45.3% month-on-month to N700.50 billion in May, up from N482.04 billion in April. The Exchange noted that this performance was driven by increased participation from both domestic and foreign investors, with domestic investors accounting for 83.0% of total transactions and foreign investors contributing 17.0%.
A detailed breakdown revealed that domestic investors’ activity rose by 38.8% MoM to N581.59 billion in May, up from N418.97 billion in April. This growth was largely driven by retail investors, whose transactions surged by 86.1% MoM, while institutional investors saw a modest 2.7% increase.
However, net flows declined by 54.0% MoM to N2.64 billion in May, down from N5.74 billion in April. This was due to strong net foreign inflows of N13.31 billion, which outweighed net domestic outflows of N10.67 billion.
According to Vanguard, analysts at Cordros Capital provided insights on the trend, stating: “In the near term, we expect domestic investors to remain the primary drivers of transaction value, supported by an anticipated decline in fixed income yields, which is expected to sustain buying interest. Furthermore, the relative stability of the naira is likely to encourage increased participation from foreign investors in the equities market; however, prevailing global uncertainties present a downside risk to sustained inflows.”
The rebound in foreign portfolio investments signals renewed confidence in Nigeria’s capital market, though analysts caution that external economic factors could influence future trends. The sustained activity from domestic investors, particularly retail participants, highlights growing local interest in equities amid shifting yields in the fixed-income space.
