Nigeria’s equity market recorded a historic performance in 2025, with total transactions reaching N11.92 trillion (US$15.6 billion), driven by strong domestic participation and a notable resurgence in foreign portfolio investment, the Nigerian Exchange said on Thursday.
According to the Domestic & Foreign Portfolio Participation in Equity Trading Summary of Transactions as of Dec. 31, 2025, market activity more than doubled from N5.59 trillion in 2024, reflecting a year-on-year growth of 113.4 percent.
Domestic investors accounted for the bulk of activity, contributing 77.8 percent of total trades with transactions valued at N9.27 trillion. Foreign investors supplied the remaining 22.2 percent, equivalent to N2.65 trillion, signalling a recovery in offshore participation after years of cautious positioning.
On a monthly basis, momentum accelerated sharply toward the end of the year. Total transactions rose by 42.1 percent from N971.18 billion in November to N1.38 trillion in December 2025. Compared with December 2024, when trades stood at N673.67 billion, activity more than doubled, highlighting the strength of the 2025 rally.
The December surge was largely supported by foreign buying. Foreign transactions jumped 182.7 percent month-on-month, from N162.04 billion in November to N458.09 billion in December, driven primarily by large block trades. Despite the spike in offshore activity, domestic investors continued to dominate, with local trades exceeding foreign transactions by roughly 34 percent during the month.
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Within the domestic segment, institutional investors led the charge over retail participants. Institutional trades rose 13.6 percent month-on-month to N603.62 billion, while retail transactions grew 14.7 percent to N318.69 billion. Overall, institutions outperformed retail investors by about 30 percent, underscoring the growing influence of large capital pools in Nigeria’s stock market.
Historical data highlight a long-term structural shift. Over the past 19 years, domestic transactions expanded 160.8 percent, rising from N3.56 trillion in 2007 to N9.27 trillion in 2025. Foreign trades grew even faster, up 329.9 percent from N615.6 billion to N2.65 trillion over the same period, though domestic investors have consistently retained leadership.
Market analysts said the surge reflects renewed confidence among local investors, backed by strong economic indicators and policy stability, alongside intermittent but significant foreign inflows. However, they cautioned that sustaining foreign interest beyond episodic block trades remains a key challenge for the market.
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“The 2025 performance positions Nigeria’s equity market as one of the most active in nearly two decades,” said an analyst at a Lagos-based brokerage. “Domestic investor participation remains the backbone of market activity, while foreign inflows provide supplementary momentum, particularly during large trades.”
The 2025 rally also underscores the increasing role of institutional capital in shaping trading patterns and market direction. Experts note that robust domestic participation, particularly by pension funds and insurance companies, has helped stabilise the market despite global volatility.
Nigeria’s stock market, long dominated by domestic investors, has benefited from regulatory reforms, improved market transparency, and a growing appetite for equities, supporting its emergence as a key frontier market in Africa.
The Nigerian Exchange said it expects continued growth in market activity in 2026, though sustainability will depend on macroeconomic conditions, investor confidence, and the ability of foreign investors to maintain consistent inflows into the local equity market.
