Foreign outflows on the Nigerian Exchange (NGX) rose 9.12% to N72.32 billion in February 2026 despite an improvement in inflows, signalling continued cautious sentiment among offshore investors.
This is according to the latest Domestic & Foreign Portfolio Investment Report released by the Nigerian Exchange Limited (NGX).
The report, which tracks trading activity as of February 28, 2026, relative to January, shows that while foreign participation improved, capital withdrawals still outpaced inflows, reflecting persistent macroeconomic concerns.
What the data is saying
Foreign investor activity showed mixed signals during the review period, with both inflows and outflows rising, but the latter remaining dominant. The data highlights a modest recovery in participation alongside sustained capital exits.
- Foreign inflows climbed by 39.39% to N66.71 billion in February, from N47.86 billion in January.
- Foreign outflows rose by 9.12% to N72.32 billion, up from N66.28 billion in the prior month.
- This resulted in a net foreign outflow of N5.61 billion in February, compared to N18.42 billion recorded in January.
- Total foreign transactions increased by 21.81% to N139.03 billion, from N114.14 billion in January.
Although the narrowing net outflow suggests some level of stabilisation, foreign investors still withdrew more funds than they injected, indicating continued profit-taking and cautious positioning.
More insights
The persistence of net outflows underscores ongoing risk aversion among foreign investors, even as overall market activity rebounded strongly. Domestic participation remained the key driver of trading activity on the exchange.
- Total transactions surged by 78.93% month-on-month to N1.542 trillion in February, largely driven by domestic investors.
- Foreign participation declined in share terms to 9.01% of total transactions, down from 13.24% in January.
- Domestic investors accounted for 90.99% of total market activity, reinforcing their dominance.
- Institutional investors led domestic participation with N854.83 billion, significantly ahead of retail investors at N548.50 billion.
The stronger growth in inflows relative to outflows points to tentative re-entry by foreign investors, but not at a pace sufficient to reverse the negative net position.
Get up to speed
On a year-to-date basis, the imbalance between foreign inflows and outflows remains evident, highlighting a broader trend of capital flight relative to investment inflows. This trend reflects lingering uncertainties in the investment climate.
- Total foreign inflows stood at N114.57 billion, while outflows reached N138.60 billion, resulting in a net outflow of N24.03 billion.
- Foreign transactions accounted for 10.53% of total market activity, compared to 89.47% for domestic investors.
- Overall transactions for the first two months of 2026 rose to N2.404 trillion, more than double the N1.116 trillion recorded in the same period of 2025.
Historical trends show that domestic investors continue to dominate Nigeria’s equities market despite gradual growth in foreign participation. This reinforces the structural reliance on local investors to sustain liquidity and market activity on the NGX.
What you should know
February’s data reflects a gradual recovery in foreign investor sentiment, though not yet a full turnaround. The improvement in inflows suggests renewed, albeit cautious, interest in Nigerian equities.
- In January 2026, foreign investors recorded a sharp net outflow as inflows lagged significantly behind outflows.
- February saw improved inflows and a smaller net exit, indicating a moderation in capital flight.
- However, the continued rise in outflows signals lingering concerns about Nigeria’s macroeconomic environment.
- Sustained confidence will depend on stronger macroeconomic stability and clearer policy direction.
Overall, while foreign investor participation is showing early signs of recovery, the continued dominance of outflows highlights the need for improved economic fundamentals to attract and retain long-term capital.
