The Nigerian capital market suffered a major blow in the first half of 2025 as foreign portfolio investors dumped equities worth ₦576 billion, signaling deepening concerns over Nigeria’s economic direction and investment climate.
Data released by the Nigerian Exchange Limited (NGX) on Wednesday, August 7, shows that foreign outflows significantly outweighed inflows, as international investors reacted to persistent currency instability, rising inflation, and tight capital controls that have hampered profit repatriation.
Market watchers attribute the sustained sell-off to macroeconomic uncertainty, a lack of clear policy direction from fiscal and monetary authorities, and ongoing difficulties surrounding the Central Bank’s management of foreign exchange reserves.
“The outflow trend reflects foreign investors’ lack of confidence in the Nigerian economy at this time. Until there’s clear stabilization in forex policy and inflation is tackled aggressively, we may continue to see capital flight,” said Adaeze Nwokoye, an investment strategist in Lagos.
Despite efforts by the federal government to attract foreign direct investment and rebuild investor trust, the domestic bourse has remained largely driven by local participation. The imbalance, experts warn, could threaten long-term market growth if not addressed.
The NGX has urged the government to implement more investor-friendly reforms and resolve outstanding FX issues to encourage the return of foreign capital and restore Nigeria’s credibility on the global investment map.
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