Foreign portfolio investment (FPI) in the Nigerian stock market surged to N1.3 trillion in the first seven months of 2025, reflecting improved investor confidence and foreign exchange stability.
According to the Nigerian Exchange Limited (NGX), foreign participation more than doubled year-on-year, rising by 114.2 percent compared to N598 billion in the same period of 2024. By July 2023, FPI stood at N185.62 billion, showing a consistent upward trend in recent years.
The report revealed that foreign inflows tripled to N609.73 billion in the period under review, compared to N266.64 billion in 2024. Outflows also climbed from N331.36 billion by July 2024 to N671.56 billion this year, underscoring the heightened level of activity by offshore investors.
Overall, the surge in foreign transactions pushed total market turnover at the NGX to N6.01 trillion, almost double the N3.1 trillion recorded in the corresponding period of 2024. In comparison, total foreign turnover had stood at N301.37 billion and N262.85 billion in 2022 and 2021, respectively.
Analysts linked the sharp increase in foreign inflows to the improved stability of Nigeria’s foreign exchange market, which has provided investors greater confidence and supported the domestic currency.
“Specifically, we expect sustained inflows from foreign portfolio investors due to existing carry trade opportunities and stronger market confidence,” analysts at Cordros Capital noted.
They further added that the combination of rising FPI, growing oil earnings, and stronger non-oil exports would continue to anchor a stable naira in the near term.
