By David Akinmola
Foreign portfolio investors have poured over N1 trillion into Nigerian equities in the first nine months of 2025, signalling renewed confidence in the country’s financial markets despite persistent macroeconomic headwinds.
Latest data from the Nigerian Exchange Limited (NGX) show that total foreign inflows surged sharply compared to the same period in 2024, buoyed by improved foreign exchange liquidity, monetary policy tightening, and ongoing economic reforms under the current administration.
Analysts attribute the rebound to policy actions by the Central Bank of Nigeria (CBN) aimed at stabilising the naira and clearing backlogs of foreign exchange obligations, which have restored partial investor confidence.
According to the NGX Domestic and Foreign Portfolio Investment (FPI) report, foreign inflows accounted for a significant portion of market activity during the period, outpacing outflows for the first time in more than three years.
“Foreign participation in the Nigerian equities market has improved considerably in 2025 due to greater transparency in FX management and the return of relative liquidity in the official market,” said David Adonri, Executive Vice Chairman of Highcap Securities Limited.
He added that reforms in the fiscal and monetary space — particularly the unification of exchange rates and the gradual reduction of FX restrictions — have improved investor sentiment.
Meanwhile, domestic investors, comprising institutional and retail participants, still dominate market transactions, contributing over 60 percent of total value traded between January and September 2025.
Market analysts expect the positive momentum to persist in the last quarter of the year, especially as the Federal Government intensifies efforts to attract offshore capital and deepen the local bourse through new listings and privatisation initiatives.
However, concerns remain over inflation, rising interest rates, and the naira’s volatility, which could temper the pace of foreign investment inflows.
“The sustainability of this trend depends on policy consistency and the government’s ability to sustain FX stability,” noted Adebayo Adeola, a Lagos-based investment analyst.
Despite these risks, the NGX All-Share Index has gained over 30 percent year-to-date, positioning Nigeria among Africa’s best-performing stock markets in 2025.
