Foreign Portfolio Investment Hits 118% in NGX March Transactions

The Nigerian Exchange Limited (NGX) recorded a remarkable 118.95% surge in total market transactions in March 2025, fueled primarily by a strong resurgence in foreign portfolio investments (FPI).

This was disclosed in NGX’s latest Foreign Portfolio Investment Report for March 2025, compiled using data submitted by capital market operators.

According to the report, the total value of transactions on the Exchange jumped significantly from N509.47 billion in February to N1.115 trillion in March, reflecting heightened investor activity. When expressed in U.S. dollar terms, the market witnessed a substantial rise from $341.36 million in February to $725.86 million in March.

The report attributes this growth to an influx of foreign capital, with foreign participation overtaking domestic investment by a considerable margin. Foreign investors were responsible for N699.8 billion worth of transactions in March, accounting for 62.74% of the monthly total—a notable shift that underlines renewed international interest in Nigerian equities.

In contrast, domestic investors contributed N415.6 billion or 37.26% of the total turnover. This marks a significant reversal from the previous month, when local participation dominated the market with a 91.63% share, representing N466.8 billion out of N509.4 billion.

Foreign investment, which had slumped to just N42.65 billion in February, down 40.35% from January’s figures—bounced back impressively in March. This sharp rebound not only offset February’s decline but was instrumental in more than doubling the Exchange’s overall transaction value.

Further analysis of March’s foreign investment activities shows a near-equal distribution between inflows and outflows. Foreign inflows rose sharply to N349.97 billion, up from N18.05 billion in February. This compares to N25.6 billion recorded in January, highlighting a significant upward movement.

Similarly, foreign outflows increased from N24.6 billion in February to N349.92 billion in March. Despite the spike in both directions, the net foreign inflow for March stood at a modest N50 million, suggesting relatively balanced trading by foreign investors.

Over a longer horizon, the NGX highlighted the evolving dynamics of capital market participation. Between 2007 and 2024, domestic investments grew from N3.5 trillion to N4.7 trillion, while foreign investments rose from N616 billion to N852 billion.

The March figures, which show foreign capital dominating market activity, may indicate a potential shift in historical trends where local investors traditionally held sway. If sustained, this renewed foreign interest could reshape the composition of market participation in the coming years.