Foreign portfolio investors (FPIs) in the Nigerian equities market traded N996.03 billion worth of stocks in five months to May 2025 as against N458.29 billion seen in the corresponding period of 2024.
This means that their deals doubled in 2025 as they leveraged forex and general economic stability.
The record value of equities transaction by foreign investors in five months this year represents 29.17 percent of the total value of stocks traded on the Nigerian Exchange Limited (NGX).
“Relative stability in the economy and the fact that shares of many of quoted companies are undervalued relative to their intrinsic values have boosted confidence of Foreign Portfolio Investors (FPIs),” Oluropo Dada, president and chairman of council, Chartered Institute of Stockbrokers (CIS), said in a recent interview.
“There is improved liquidity in the forex market and the naira is relatively stable,” he said.
He noted that many blue-chip firms -particularly in the banking, telecoms, and consumer goods sectors – posted robust first-quarter (Q1) 2025 earnings with improved margins.
“This is on the back of forex gains and cost optimisation. The outstanding performance has strengthened investor appetite for the companies’ stocks. The market has recorded moderate foreign portfolio inflows, which indicate optimism in our market,” Dada further noted.
In the review five-month period to May 2025, foreign investors brought in N486.43 billion into Nigeria’s equities market while they took out N509.60 billion from the market in the same period.
In January, foreign investors accounted for N71.51 billion deals, representing 11.78 percent of total equity transactions. They inflowed N25.66 billion in January and outflowed N45.85billion in the same month.
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In February, foreign investors traded stocks worth N42.65 billion, representing 8.37 percent of the total value of stocks exchanged on the NGX in the same period. Foreign inflows were estimated at N18.05billion in February while the outflows stood at N24.60 billion.
In March, foreign investors’ transactions reached a record high of N699.89 billion or 62.74 percent of the total value of trade in the same month. Foreign inflows in March were put at N349.97billion while foreign outflows in the same month stood at N349.92billion.
In April, foreign investors traded N63.07 billion of Nigerian listed stocks, representing 13.08 percent of the total value of stocks traded on the NGX. A summary of their transaction shows that they inflowed N26.64 billion and outflowed N36.43 billion.
In May, foreign investors traded N118.91billion worth of equities on the NGX, representing 16.98 percent of total value of stocks traded on the NGX in the same period. Foreign inflows into Nigeria’s stock market stood at N66.11 billion in May while foreign outflows were estimated at N52.80 billion.
Bismarck Rewane-led Financial Derivatives Company (FDC), in its recent presentation at the Lagos Business School (LBS) Executive Breakfast Session (EBS), said corporates and investors are navigating Nigeria’s economic shift, noting that “stock investors’ cautious optimism is driven by a mix of positive reforms and persistent structural challenges.”
“Investor sentiment is warming, fuelled by forex reforms, policy clarity, and signs of macroeconomic stabilisation. Investors are showing renewed interest, particularly in banks, infrastructure, and energy, but are still watching the policy environment.
“Portfolio investors are slowly returning, encouraged by higher yields, a more flexible exchange rate, and enhanced central bank transparency. Promising reforms and digitalisation are positioning the NGX for future growth, possibly to full Emerging Market (EM) status,” FDC analysts further noted.
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In five months to May 2025, equity investors (local and foreign) traded stocks worth N3.414 trillion, compared with N2.249 trillion stocks they exchanged in the five months of 2024.
The local investors traded equities valued at N2.41 billion, representing 70.83 percent of the value of stocks exchanged on the NGX in the five-month period.
