The aggregate value of stock transactions on the floor of the Nigerian Exchange Limited (NGX) fell from N607.05 billion (approximately $410.84 million) in January 2025 to N509.47 billion (approximately $341.36 million) in February 2025.
According to the Domestic and Foreign Portfolio Transactions Report released by the NGX, this shows a 16.07% decline in total market transactions for February 2025, reflecting a slowdown in trading activity compared to the previous month.
Despite this month-on-month drop, the market showed remarkable improvement on a year-on-year basis, with total transactions in February 2025 rising by 42.36% from the N357.88 billion recorded in February 2024.
The data further underscores the dominant role played by domestic investors, whose activity in February 2025 outpaced that of foreign investors by an overwhelming 84%.
A deeper analysis of investor participation in February 2025 reveals that domestic transactions accounted for the lion’s share of market activity, despite experiencing a 12.83% decline from N535.54 billion in January to N466.82 billion in February.
Foreign investor participation, on the other hand, saw a much steeper drop of 40.36%, plummeting from N71.51 billion ($48.38 million) in January to N42.65 billion ($28.57 million) in February. This sharp decline in foreign transactions reflects ongoing concerns about macroeconomic headwinds, foreign exchange volatility, and geopolitical uncertainties that have deterred foreign participation in Nigeria’s equities market.
Within the domestic segment, institutional investors continued to dominate over retail investors, holding an 8% advantage in transaction value. However, both institutional and retail investors saw a decline in activity.
Retail transactions dropped by 19.76%, from N267.35 billion in January to N214.51 billion in February, suggesting a pullback from smaller individual investors. Meanwhile, institutional transactions declined by 5.92%, moving from N268.19 billion to N252.31 billion, highlighting a more measured approach by fund managers and large institutional players in response to evolving market conditions.
Looking at historical trends, the data indicates that domestic investor participation has been on a steady upward trajectory over the last two decades. Domestic transactions grew by 33.15%, rising from N3.556 trillion in 2007 to N4.735 trillion in 2024, reflecting increased confidence and participation from local investors.
During the same period, foreign transactions also saw an increase of 38.31%, from N616 billion to N852 billion, though the share of foreign participation remained significantly lower compared to domestic investment.
In 2024, domestic transactions accounted for 85% of total market transactions, while foreign transactions contributed a mere 15%.
This trend has continued into 2025, with domestic transactions totalling N1.002 trillion so far, while foreign transactions remain significantly subdued at approximately N114.16 billion.
Market analysts have noted the growing self-reliance of the Nigerian equities market, as local investors continue to drive market activity amid dwindling foreign participation.
The consistent dominance of domestic investors suggests that confidence in the local bourse remains strong, even as foreign investors adopt a more cautious stance due to external uncertainties.
With domestic institutional investors maintaining a significant presence, the NGX may continue to see sustained market stability, albeit with some volatility influenced by macroeconomic factors.
