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Tag: Foreign portfolios

  • Foreign portfolios triple to N1.8tr all-time high in Q3

    Foreign portfolios triple to N1.8tr all-time high in Q3

    Foreign portfolio transactions in Nigeria tripled to all-time high of N1.8 trillion by the third quarter, underlining the increasing attraction of the Nigerian market as a destination for global capital.

    Latest report on foreign portfolio participation in Nigeria obtained yesterday showed that total foreign portfolio transactions rose to N1.841 trillion by third quarter ended September 30, 2025 compared with N696.9 billion recorded in comparable period of 2024. It was the highest performance within such a period.

    The latest report also indicated, for the first time in recent period, significant upside for the Nigerian market with more inflows than outflows, in two-way transactions characteristic of foreign portfolio investments (FPIs).

    The nine-month report showed a net surplus of N220 billion by third quarter 2025 as against deficit of N75 billion recorded by third quarter 2024. Total foreign inflows rose from N311 billion in third quarter 2024 to N1.03 trillion in third quarter 2025. Foreign outflows however increased from N385.9 billion to N810.4 billion.

    The report on FPIs, coordinated by the Nigerian Exchange (NGX) is widely regarded as a measure of the macroeconomic outlook. The report included transactions from nearly all custodians and capital market operators.

    The report uses two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the equities market and the economy. While inflows and outflows indicate direction of portfolio transactions, total FPI measures the momentum and level of participation.

    With the increase, the size of foreign participation in the Nigerian market improved by four percentage points from 17.56 per cent in 2024 to 21.56 per cent in 2025.

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    The rising momentum of FPIs supported resilient domestic transactions to push total turnover at the NGX to a record N8.54 trillion by third quarter 2025, compared with N3.97 trillion by third quarter 2024.

    However, the size of domestic transactions reduced from 82.44 per cent in 2024 to 78.44 per cent in 2025. Total domestic transactions had risen from N3.27 trillion to N6.70 trillion, driven by significant improvements across retail and institutional investments.

    Retail domestic transactions increased from N1.74 trillion to N2.61 trillion while domestic institutional trading jumped from N1.53 trillion to N4.09 trillion, both underlining the increasing investments by Nigerians in the domestic market.

    Experts were unanimous that the all-time scramble for Nigerian investments was related to the improvement in the country’s macroeconomic outlook.

    The NGX attributed the bullish trading at the market to broad economic reforms and improving investor sentiment, as the equities market heads to a new milestone of N100 trillion capitalisation. Total market value of all quoted equities at the NGX spiraled to N97.58 trillion. Market analysts expected the market to cross the N100 trillion mark before the end of the year.

    The NGX noted that the rebound coincides with a broader policy reset that has redefined Nigeria’s economic outlook, pointing out that measures such as the liberalisation of the naira, the removal of fuel subsidies, and closer coordination between fiscal and monetary authorities have begun to restore a degree of macroeconomic stability, even as inflation remains elevated.

    Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Temi Popoola said much of the market’s resilience could be traced to a “wave of coordinated reforms” that have rebuilt confidence in the country’s financial architecture.

    He said: “The strength we’ve seen in the market has been driven largely by reforms, from the President’s economic agenda to decisive actions by the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), PENCOM, and other regulators.  These efforts have created the right foundation for investor confidence and renewed market activity”.

    Popoola, who spoke during a panel discussion on “Nigeria’s Economic Journey: Crisis, Recovery, and Risk” at the Financial Times Africa Summit 2025 in London, the market’s advance underscored renewed investor confidence and the resilience of Nigeria’s capital markets amid a shifting macroeconomic environment.

    Director General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama said the signging of the Investments and Securities Act 2025 by President Bola Tinubu was a turning point for governance and regulatory transparency in the market.

    He said: “The new law was crafted to reflate the economy by providing clarity, certainty, and discipline in our markets,” Agama said. “Robust regulation has been central to restoring market integrity and investor trust, providing the transparency required to anchor long-term capital formation in Nigeria”.

    Other participants, including Patience Oniha, Director-General of the Debt Management Office, and Will Straw, Chief Executive of King’s Trust International, observed that the next phase of Nigeria’s reform journey lies in ensuring that the gains in stability and capital inflows translate into broader, inclusive growth for households and businesses.

  • Foreign portfolios double to N1.45tr amid stronger inflows

    Foreign portfolios double to N1.45tr amid stronger inflows

    Total foreign investors’ transactions at the Nigerian stock market have risen by about 122 per cent as increased forex inflows continued to support record turnover at the capital market.

    Latest report on foreign portfolio participation in Nigeria released at the weekend indicated that foreign portfolios rose to N1.45 trillion in the first eight months of this year, 121.67 per cent above N655.47 billion recorded in comparable period of 2024.

    The report showed that foreign portfolio inflows recorded the highest pace across the major indicators with a growth of 135.16 per cent. In the two-way transaction, outflows rose by 110.33 per cent while total domestic transaction increased by 93.72 per cent over the period.

    The proportion of foreign portfolio investors (FPIs) in the Nigerian market increased to 21.01 per cent compared with 18.86 per cent in corresponding period of 2024.

    FPI inflows rose from N299.73 billion in first eight months of 2024 to N704.87 billion in first eight months of 2025. On the other hand, outflows stood at N748.23 billion in 2025 as against N355.74 billion in 2024.

    Total transactions by domestic individual and institutional investors rose from N2.82 trillion in 2024 to N5.463 trillion in 2025.     

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    A breakdown showed a sustained uptrend in FPI transactions with a five-month peak in August. Total FPI transactions in August 2025 stood at N171.81 billion, the second highest turnover this year after a record transaction of N699.89 billion in March 2025, driven largely by wholesale investments in financial institutions. Total inflows outpaced outflows in August 2025 with buy side of N95.14 billion against a sell side of N76.67 billion.

    Total transactions, by both foreign and domestic investors, at the NGX for the eight-month period stood at N6.92 trillion in 2025 as against N3.48 trillion recorded in comparable period of 2024.

    The report on FPIs, coordinated by the Nigerian Exchange (NGX) is widely regarded as a measure of the macroeconomic outlook. The report included transactions from nearly all custodians and capital market operators.

    The report uses two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the equities market and the economy. While inflows and outflows indicate direction of portfolio transactions, total FPI measures the momentum and level of participation.

    Analysts at Cordros Capital said that while monthly foreign exchange (forex) inflows have remained volatile in 2025, the trend generally has remained above the 2024 full-year average.

    Analysts noted that the positive forex trend indicated “resilient market liquidity supported by improved confidence, which has underpinned naira stability”.

    “In the near term, we expect the naira to remain stable, underpinned by resilient forex market liquidity and improving domestic inflows. Prospective portfolio inflows are likely to benefit from the dovish shift in global monetary policy and the accompanying decline in treasury yields, which could enhance investor appetite for naira-denominated assets. At the same time, stronger non-oil export receipts and reduced incentives for speculative positioning should reinforce the positive momentum and suggest a more balanced forex market outlook,” Cordros Capital stated at the weekend.

    Foreign inflows had tripled to N609.73 billion in the first seven months of this year compared with N266.64 billion recorded in corresponding period of 2024. Foreign outflows also increased from N331.36 billion by July 2024 to N671.56 billion by July 2025. 

    The surge in foreign portfolios had supported total transactions at the NGX to a seven-month record of N6.01 trillion, nearly a double of N3.1 trillion recorded in comparable period of 2024.

    Experts have credited rising foreign inflows with the stability in the forex market, which has supported the domestic currency.

    Experts said investors were reacting positively to stability in the overall macroeconomic environment.

    Minister of Finance and Coordinating Minister of the Economy, Wale Edun, attributed increasing inflows of foreign direct and portfolio investments to the gains of President Bola Tinubu’s macroeconomic reforms.

    According to him, continuing expansions by multinationals operating in the Nigeria, as further illustrated by the inauguration of PepsiCo’s $20 million expanded snacks manufacturing facility last week in Lagos, were votes of confidence on the future outlook of the Nigerian economy.

    He noted that measures such as the removal of fuel subsidies and the unification of the foreign exchange market, and market-based pricing, though difficult, had restored transparency, improved liquidity, and stabilized Nigeria’s macroeconomic environment.

    He said government’s policies have saved revenues equivalent to five per cent of Gross Domestic Product (GDP), funds that are now being channeled into infrastructure, healthcare, and education.

    Managing Director, AIICO Capital, Dr Femi Ademola, said Nigerian equities have become very attractive to both foreign and domestic investors.

    “The equities market has become very attractive, mostly due to the devaluation of the currency which make the shares very cheap, especially to foreign investors. The very strong half-year performance reported by corporates especially banks and the corporate actions that followed the announcements have also driven many investors to the equities market. Finally, the lack of volatilities in the bond market makes it unattractive to investors, thus they flock to the equities market,” Ademola, a Chartered Financial Analyst (CFA), said.

    Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, said the ongoing banking recapitalisation and the reforms in the oil sector have driven more investors to the market.

    “We’ve seen increasing return of foreign portfolio investors, I understand the turnover by FPIs has grown significantly in the last few months. This can be attributed to the weaker naira that makes Nigerian stocks a bargain for FPIs. Secondly, new listings such as Aradel also boosted investors’ appetite for stocks. This can also be seen in the light of the approval of the Exxon Mobil’s acquisition by Seplat by the Federal Government. Thirdly, the banking recapitalisation exercise along with impressive second quarter reports have continued to attract investments towards that sector,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS), said.

    Managing Director, HighCap Securities, Mr David Adonri, said the banking sector has contributed substantially to the growing turnover at the stock market.

    “The recapitalisation of banks is orchestrating demand for their shares even in the secondary market. Highly capitalised stocks in the petroleum sector have also been upbeat. Finally, investors have also reacted positively to the big interim dividends declared by banks,” Adonri said.

  • Foreign portfolios rose to N1.3tr in seven months

    Foreign portfolios rose to N1.3tr in seven months

    Foreign investors’ transactions at the Nigerian stock market have risen to a new record high of about N1.3 trillion, underlining improving global investors’ confidence in Nigeria’s macroeconomic outlook.

    The latest report on foreign portfolio participation in Nigeria obtained at the weekend indicated that foreign portfolios had more than doubled this year, outpacing the previous year’s portfolios by 114.2 per cent.

    The report for the seven months ended July 31, 2025, showed total foreign portfolios of N1.28 trillion compared with N598 billion recorded in the comparable period of 2024. Within the same period in 2023, foreign portfolios had stood at N185.62 billion.

    The N1.3 trillion foreign turnover also significantly surpassed N301.37 billion and N262.85 billion recorded within the first eight months of 2022 and 2021, respectively.

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    The report on foreign portfolio investments (FPIs) by the Nigerian Exchange (NGX) showed substantial increases in two-way transactions by foreign investors, a measure of active participation and tracking of the Nigerian market by global investment fund managers.

    The FPI report included transactions from nearly all custodians and capital market operators, and it is widely regarded as a credible measure of the FPI trend.

    The report uses two key indicators-inflow and outflow- to gauge foreign investors’ mood and participation in the equities market and the economy. While inflows and outflows indicate the direction of portfolio transactions, total FPI measures the momentum and level of participation.

    Foreign inflows tripled to N609.73 billion in the first seven months of this year compared with N266.64 billion recorded in the corresponding period of 2024. Foreign outflows also increased from N331.36 billion by July 2024 to N671.56 billion by July 2025. 

    The surge in foreign portfolios supported total transactions at the NGX to a seven-month record of N6.01 trillion, nearly double of N3.1 trillion recorded in the comparable period of 2024.

    Experts have credited rising foreign inflows with the stability in the Nigerian foreign exchange (forex) market, which has supported the domestic currency.

    Experts said investors were reacting positively to stability in the overall macroeconomic environment.

    “Specifically, we expect sustained inflows from foreign portfolio investors (FPIs) due to existing carry trade opportunities and stronger market confidence,” Cordros Capital stated at the weekend.

    Analysts said rising FPIs and growing oil and non-oil exports would continue to support a stable naira.

    The naira had appreciated by 1.1 per cent to close the weekend at N1,520.00 per dollar. Cordros Capital cited Central Bank of Nigeria (CBN)’s intervention and increased inflows from FPIs as the two factors behind the naira appreciation.

    Nigeria’s gross forex reserves increased to their highest level since December 2021 at the weekend, rising by $353.47 million to $41.08 billion.

    OPEC’s August Monthly Oil Market Report (MOMR) showed that for the second consecutive month, Nigeria’s crude oil output remained above its OPEC+ quota of 1.50 mb/d, averaging 1.50 mb/d in July 2025.

    Analysts said the outperformance reflected the combined impact of improved security conditions in the Niger Delta and a gradual rebound in upstream investment, supported by the transfer of divested assets from international oil companies to indigenous operators.

    “Indigenous players have increasingly taken the lead in deploying capital and accelerating field development, which has helped sustain production levels despite lingering operational and infrastructural challenges. Notably, average crude production in H1-25 stood at 1.47 mb/d, underscoring the sector’s gradual but fragile recovery momentum. Overall, we expect Nigeria’s crude oil production to remain marginally above the OPEC+ quota through year-end, underpinned by improved security measures and a gradual recovery in sector investments,” Cordros Capital stated at the weekend.

    Minister of Finance and Coordinating Minister of the Economy, Wale Edun, attributed increasing inflows of foreign direct and portfolio investments to the gains of President Bola Tinubu’s macroeconomic reforms.

    According to him, continuing expansions by multinationals operating in Nigeria, as further illustrated by the inauguration of PepsiCo’s $20 million expanded snacks manufacturing facility last week in Lagos, were votes of confidence in the future outlook of the Nigerian economy.

    He noted that measures such as the removal of fuel subsidies and the unification of the foreign exchange market, and market-based pricing, though difficult, had restored transparency, improved liquidity, and stabilized Nigeria’s macroeconomic environment.

  • Foreign portfolios rise by 24% on macroeconomic reforms

    Foreign portfolios rise by 24% on macroeconomic reforms

    • Optimism on growing investors’ confidence

    The proportion of foreign portfolio transactions in the stock market has more than doubled in recent period with increased flows and activities underlining growing confidence in the Nigerian economy.

    Latest report on foreign portfolio investments (FPI), obtained at the weekend, showed that the proportion of foreign transactions in the Nigerian market doubled from 8.2 per cent in January 2024 to 18.4 per cent in February 2024.

    Total FPI turnover rose by 23.9 per cent in February 2024, with a two-month growth of 167.12 per cent when compared with the first two months of 2023. Foreign portfolio inflows had risen by 58 per cent in February 2024 while outflows was slower with an increase of 9.5 per cent. On a two-month basis, FPI inflows grew by 201.1 per cent in the first two months of the year when compared with the corresponding period of last year. On the other hand, outflows increased by 152.3 per cent when compared with similar period in 2023.

     The FPI report, coordinated by the Nigerian Exchange (NGX), included transactions from nearly all custodians and capital market operators and it is regarded as a credible measure of FPI trend. The report uses two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the equities market and the economy. While inflows and outflows indicate direction of portfolio transactions, total FPI measures the momentum and level of participation.

    When inflows outweigh outflows, it simply means foreign investors are buying more quoted equities than they are selling and when outflows outpace inflows, it implies that foreign investors are selling more of their investments than buying more investments. Thus the position of FPI surplus or deficit.

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    Total foreign transactions rose from N53.11 billion in January 2024 to N65.81 billion in February 2024. Foreign inflows increased from N15.78 billion in January to 24.93 billion in February while outflows stood at N40.88 billion in February 2024 as against N37.33 billion in January, this year.

    On year-to-date basis, total inflows in the first two months of 2024 stood at N40.71 billion compared with N13.52 billion in similar period of 2023. Total outflows however increased from N31 billion in 2023 to N78.21 billion in the year.

    Total transactions at the stock market, during the two-month period, had grown by 162.9 per cent to N1.01 trillion in first two months of 2024 as against N384.01 billion recorded in comparable period of 2023.  Total turnover had stood at N651.52 billion and N357.89 billion in January and February 2024 respectively.

    Market analysts attributed the improvement in foreign participation in the market to the early gains of macroeconomic reforms.

    Analysts at Cordros Capital said investors were responding positively to initiatives by the Central Bank of Nigeria (CBN), which have fixed foreign exchange (forex) inadequacies.

    “Looking ahead, we expect domestic investors to continue to dominate market performance, though rising fixed-income yields may constrain buying activities. At the same time, we believe the CBN’s policies around fixing forex inadequacies will continue to bolster investor confidence and encourage the continued return of foreign investors. Consequently, we expect sustained improvements in foreign participation in the short term,” Cordros Capital stated.

    Managing Director, AIICO Capital, Mr. Femi Ademola, said inflows from FPIs could provide additional buffer for Nigeria’s forex reserves.

    According to him, foreign portfolio managers are now optimistic about the country’s economic prospects and may be looking for opportunities to invest in Nigeria.

    “While this may likely be more of hot monies rather than patient capital, it would by and large help to improve the reserves in the short term while sending a more reassuring signal to the markets,” Ademola further said.

    In a major recovery, Nigeria’s FPIs status had witnessed a major turnaround with annual inflows outweighing outflows for the first time in five years.

    Yearly trading data on FPI showed that foreign investors bought more Nigerian stocks than they sold in 2022, reversing the negative trend that started in 2018.

    FPI transactions ended 2022 with a surplus of N12.29 billion, as against a deficit of N24.74 billion recorded in 2021. Nigeria recorded FPI deficit of N234.66 billion in 2020, about 125 per cent increase on N104.3 billion recorded in 2019.The country had slipped into negative with FPI deficit of N66.3 billion in 2018.

    FPI inflows closed 2022 at N195.76 billion as against outflows of N183.47 billion. FPI outflows had outweighed inflows at N229.62 billion and N204.88 billion in 2021. However, total FPI transactions dropped from N434.5 billion in 2021 to N379.23 billion in 2022. The proportion of foreign transactions to total transactions declined from 22.88 per cent in 2021 to 16.32 per cent in 2022.

    Total transactions at the Nigerian equities market had jumped from N1.899 trillion in 2021 to N2.324 trillion in 2022 as domestic investors defied political transition and spiraling inflation to accumulate stronger positions in quoted shares.

    The 2022 FPI surplus was a major recovery for the market, although the momentum of foreign transactions remained on the decline. FPIs in Nigerian stock market had dropped consecutively to lowest levels in recent years. Active participation of foreign investors in Nigerian market declined by 11 percentage points from about 34 per cent of total market transactions in 2020 to about 23 per cent in 2021.