In May 2025, the Nigerian Exchange Limited (NGX) recorded a significant uptick in market activity, with total transactions rising by 45.32% month-on-month to N700.50bn (approx. US$441.64m), up from N482.04bn (US$301.9m) in April.
Domestic investors remained the dominant force in the market, accounting for 83.02% of total transaction value. Activity within this segment increased 38.81% to N581.59bn in May, from N418.97bn in April.
Retail investors were the key drivers, contributing N337.46bn, while institutional investors accounted for N244.13bn. Investment Financial products
Foreign Portfolio Investor (FPI) activity also picked up strongly, with total foreign transactions rising 88.54% to N118.91bn (US$74.97m), up from N63.07bn (US$39.50m) in April.
Foreign inflows more than doubled to N6.61bn, from N2.66bn in the previous month. Outflows also increased, reaching N5.28bn, compared to N3.64bn in April.
The sharp rise in both domestic and foreign participation reflects renewed investor confidence in Nigerian equities.
Robust retail activity underscores strong local appetite, while the uptick in foreign inflows suggests a cautious return of interest in emerging markets.
However, despite the recent growth in foreign transactions, overall foreign participation in the Nigerian equities market is likely to remain limited.
Persistent global economic uncertainty, increased market volatility, and rising risk aversion are prompting many international investors to reassess their exposure to emerging markets amid evolving macroeconomic conditions in developed economies. In contrast, domestic investor confidence remains resilient.
This strength is supported by relative macroeconomic stability, strong corporate earnings, and steady engagement from both institutional and retail investors.
Looking ahead, with global headwinds expected to persist, domestic investors are likely to continue driving market activity and shaping the direction of the Nigerian equities market (see chart below)
