Turnover at the Nigerian stock market rode on the back of increased foreign inflows to a new record of N10.54 trillion as foreign portfolio investors (FPIs) showed improved tendency for long-term investments in Nigerian assets.
Trading data at the Nigerian stock market reviewed yesterday showed that total transactions have more than doubled to N10.54 trillion over the past 11 months, driven by increased participation by foreign investors.
The rate of participation by FPIs has increased by some 479 basis points with retained funds or surpluses from foreign transactions so far this year nearly half of their total transactions in the previous year.
As against the previous trend where outflows were more than inflows, there has been a considerable increase in inflows compared to outflows under the new bullish sentiment.
Nigerian equities closed weekend with average year-to-date return of 47.73 per cent after investors tickled a new rally that saw the market gaining N1.67 trillion last week.
The capital gain of 47.73 per cent ranks among the five highest gains globally and represents net inflation-adjusted gain of 33.28 per cent. Nigeria’s inflation rate stands at 14.45 per cent.
With the traditional year-end rally expected to deepen this week, there are indications that total market value of Nigerian equities market would hit N100 trillion mark by the year-end. Aggregate market value of Nigerian equities rose from N95.26 trillion to N96.94 trillion last week.
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The All Share Index (ASI)- the value-based common index that doubles as Nigeria’s sovereign equity index, closed weekend at 152,057.38 points, underlining the fact that an average investor in the Nigerian market has so far recorded capital gain of 47.73 per cent. It had opened the year at 102,926.40 points.
A breakdown of the 11-month trading data showed that total turnover at the Nigerian Exchange (NGX) increased from N4.91 trillion by November 2024 to N10.54 trillion by November 2025.
Total transactions by FPIs jumped by 178.8 per cent from N785.28 billion to N2.189 trillion. Foreign inflows had grown by 218.9 per cent from N370.15 billion to N1.18 trillion, while outflows were slower at 142.89 per cent from N415.13 billion to N1.001 trillion.
The proportion of foreign to domestic participation shifted from the previous 15.98 per cent-84.02 per cent to 20.77 per cent—79.23 per cent, underscoring the stronger influence of FPIs.
Nigerians across the broad spectrum continued to stake high on the overall economic outlook with total domestic transactions rising from N4.12 trillion to N8.35 trillion. Domestic retail investors’ turnover rose from N2.11 trillion to N3.22 trillion while domestic institutional investors traded N5.13 trillion in 2025 as against N2.02 trillion in 2024.
Experts said foreign investors “were encouraged to stay longer” by the country’s improving macroeconomic outlook.
Nigeria’s inflation rate has dropped consecutively for the past eight months to stand at 14.45 per cent. Gross Domestic Product (GDP) recorded its highest growth this year in the third quarter as sustained improvements in non-oil sector supported the economy to a 3.46 per cent growth. The naira closed weekend at N1,443.00 per dollar, sustaining a steadiness that has been the basis at the foreign exchange (forex) market. Gross forex reserves closed weekend at $45.21 billion.
Citing increased inflows from FPIs, analysts at Cordros Capital said the “naira is anticipated to remain broadly stable” despite increased demand for forex.
Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Temi Popoola said the market’s resilience could be traced to coordinated reforms by the government, which have rebuilt confidence in the country’s investment environment.
According to him, government’s reforms have redefined Nigeria’s economic outlook and restored a degree of macroeconomic stability.
Managing Director, GTI Capital Group, Mr Kehinde Hassan, said investors were responding to both fiscal and monetary outlooks and the corporate earnings of quoted companies.
According to him, the bullish pricing trend is reflective of the collective assumption of investors on the prospects of the Nigerian economy.
He said the government must sustain its reforms and provide greater clarity and momentum around fiscal policies to retain positive global sentiment.
Managing Director, AIICO Capital, Dr Femi Ademola, said Nigerian equities have become very attractive to both foreign and domestic investors.
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.
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.