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.

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. (The Nation)