By CSL Research
Foreign Portfolio Investment (FPI) activities on the Nigerian Exchange Limited (NGX) continued to improve in June 2025, extending the positive trend observed in recent months. FPI transactions rose by 17.2% to N139.31bn (approximately US$91.07 million), up from N118.91bn (US$74.97m) recorded in May.
This accounted for 17.89% of the total market turnover of N778.65 billion during the month. Meanwhile, domestic investor participation also grew, increasing by 9.9% to N639.34bn (around US$417.95 million) in June, compared to N581.59 billion (US$366.67m) in May.
Domestic investors accounted for 82.11% of total market activity. While foreign inflows have steadily expanded, reflecting improving investor sentiment, domestic investors continue to serve as the backbone of the market, helping to sustain resilience and dampen volatility amid ongoing global economic uncertainties.
Of the total N139.31bn in foreign portfolio transactions recorded on the Nigerian Exchange (NGX) in June 2025, foreign inflows into the equities market stood at N72.82bn, up from N66.11bn in May, surpassing outflows of N66.49bn, which also increased from N52.80bn in the previous month.
On the domestic front, institutional investors regained dominance in June after trailing retail investors in May. Institutional transactions totalled N364.71bn, a significant rise from N244.13 billion in May, while retail transactions declined to N274.63bn from N337.46bn.
Year-to-date, total transaction value on the NGX reached N4.19trn, marking a 61.0% increase compared to N2.60trn in the first half (H1) of 2024.
Domestic investors remained the primary drivers of market activity, accounting for N3.06trn or 72.92% of total transactions in H1 2025, down from a 79.25% share (N2.06trn) in H1 2024.
Meanwhile, foreign investor participation rose to N1.14trn (27.08%) from N540.48bn (20.75%) in the same period last year. Investment
Year-to-date (YTD), equities market activities have reflected strong investor interest building up from the close of Q1 2025.
This renewed optimism has been fuelled by stronger-than-expected corporate earnings from listed companies, improving macroeconomic indicators, declining yields in the domestic debt market, and strategic corporate announcements by key bellwether stocks.
However, risks to the sustained attractiveness of the Nigerian bourse, particularly for Foreign Portfolio Investors (FPIs), remain. Chief among them is the potential impact of upcoming U.S. tariffs on major trading partners, set to take effect in August.
This development, combined with evolving U.S. inflation expectations and their influence on interest rates, could trigger shifts in global capital flows.
