Foreign Portfolio Investment Rises Sharply as NGX Records Strong Market Activity

ByMoses Alamu2 hours Ago1 Mins read44

Foreign portfolio investment in Nigeria’s stock market recorded a significant increase in February 2026, reflecting renewed investor confidence and improved market conditions.

According to data released by the Nigerian Exce Limited, foreign inflows surged by 39.4 percent to 66.71 billion naira in February 2026, up from 47.86 billion naira recorded in the same period in 2025. This growth highlights increasing participation by offshore investors in Nigeria’s equity market.

However, foreign outflows also rose during the period, climbing by 9.1 percent to 72.32 billion naira in February from 66.28 billion naira in January. Despite this, year to date figures show a stronger positive trend, with foreign inflows jumping by 162.1 percent to 114.57 billion naira compared to 43.71 billion naira in the corresponding period of 2025.

The report further revealed a substantial rise in overall market activity. Total transactions on the exce increased by 78.93 percent to 1.54 trillion naira in February, compared to 862 billion naira recorded in January. On a year to date basis, total transactions grew by 115.4 percent to 2.404 trillion naira, up from 1.116 trillion naira in February 2025.

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Domestic investors continued to dominate trading activity, outperforming foreign investors by approximately 82 percent. Within the domestic segment, institutional investors maintained a stronger presence, surpassing retail investors by 22 percent.

Retail participation also improved significantly, with transactions rising by 52.42 percent from 359.86 billion naira in January to 548.50 billion naira in February. Meanwhile, institutional investment saw an even sharper increase of 120.33 percent, reaching 854.83 billion naira from 387.97 billion naira in the previous month.

Commenting on the development, investment banker Tajudeen Olayinka linked the surge in foreign inflows to improving ility in the foreign exce market and broader macroeconomic reforms under the administration of Bola Ahmed Tinubu.

He noted that while the inflows are a positive signal for the economy in the short to medium term, structural challenges still need to be addressed to guard against potential capital flow reversals caused by external shocks.