Foreign investors remained cautious in Nigeria’s equity market in November 2025, as foreign equity transactions on the Nigerian Exchange Limited (NGX) stayed below ₦200bn for the second consecutive month, highlighting continued weak offshore participation amid lingering macroeconomic and currency concerns.
Data from the NGX Domestic and Foreign Portfolio Investment report showed that foreign equity trades declined by 13.17 per cent month-on-month to ₦162.04bn in November, down from ₦186.62bn recorded in October. The sustained sub-₦200bn performance underscores a prolonged moderation in foreign trading activity on the Exchange.
In dollar terms, foreign equity transactions fell from about $131.27m in October to approximately $112.00m in November, reflecting lower trading volumes as well as exchange-rate pressures at the Nigerian Autonomous Foreign Exchange Market.
Overall market activity also weakened during the month. Total equity transactions on the NGX declined by 5.95 per cent to ₦971.18bn in November from ₦1.03tn in October. However, on a year-on-year basis, market activity remained strong. Compared with the ₦442.34bn recorded in November 2024, total trades in November 2025 represented a 119.56 per cent increase.
Domestic investors continued to dominate the market, accounting for 83.32 per cent of total equity transactions in November, while foreign investors contributed just 16.68 per cent. Domestic transactions stood at ₦809.14bn, slightly lower than the ₦845.96bn recorded in October, but remained the primary source of liquidity on the Exchange.
A breakdown of domestic participation showed diverging trends between retail and institutional investors. Retail transactions fell sharply by 16.21 per cent to ₦277.93bn in November from ₦331.71bn in October, suggesting waning activity among individual investors. In contrast, institutional investors increased participation by 3.30 per cent to ₦531.21bn, outperforming retail investors by 32 per cent and reinforcing their growing role in sustaining market momentum.
On a year-to-date basis, total equity transactions on the NGX reached ₦10.54tn as of November 2025, more than double the ₦4.91tn recorded in the same period of 2024. Domestic investors accounted for ₦8.35tn, or 79.23 per cent, while foreign investors contributed ₦2.19tn, representing 20.77 per cent.
Historical data further highlight the increasing importance of local capital. Between 2007 and 2024, domestic transactions grew by 33.15 per cent to ₦4.73tn, while foreign transactions rose by 38.31 per cent to ₦852bn. In 2024, domestic investors accounted for about 85 per cent of total equity trades, a trend that has largely continued into 2025.
Analysts attribute the persistent weakness in foreign participation to global risk aversion, portfolio rebalancing, and concerns over currency stability and capital repatriation. Nevertheless, strong domestic institutional activity continues to provide a stabilising anchor for the Nigerian equity market.
As the year draws to a close, attention will centre on whether improved macroeconomic conditions and clearer policy signals can reignite foreign investor interest or whether domestic capital will remain the dominant force on the NGX.
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