Foreign investor participation on the Nigerian Exchange Limited recorded a strong rebound in March 2026, rising sharply by 107.74% month-on-month to N288.82 billion, even as domestic investors continued to dominate overall market activity.
This is according to the latest data of Domestic & Foreign Portfolio Investment Report published by NGX for March, 2026.
The uptick reflects renewed foreign interest alongside sustained domestic momentum, signaling a gradual shift toward a more balanced participation structure.
However, total transactions on the NGX climbed to N1.744 trillion in March 2026, representing a 10% increase from the N1.542 trillion recorded in February.
What the data is saying
According to the data, foreign participation recorded its strongest rebound in months, even though it remains a smaller share of total market activity.
- Foreign transactions surged by 107.74% to N288.82 billion in March, up from N139.03 billion in February.
- Domestic transactions rose modestly by 3.72% to N1.456 trillion.
- Overall market composition stood at 83% domestic and 17% foreign participation.
- Total market transactions increased by 10% month-on-month to N1.744 trillion.
Despite the sharp growth in foreign flows, domestic investors continue to anchor liquidity in the market.
More insights
A closer look at flow dynamics shows improving foreign inflows, though outflows remain elevated.
- Foreign inflows stood at N221.62 billion, accounting for 13.06% of total transactions.
- Foreign outflows reached N181.77 billion, indicating continued but narrowing pressure.
- Domestic inflows totalled N813.17 billion, while outflows stood at N642.43 billion.
Institutional and retail domestic investors maintained strong participation, with retail activity showing notable depth, further reinforcing local market resilience.
Year-to-date performance
On a cumulative basis, the Nigerian equities market has maintained strong growth momentum in 2026.
- Total transactions (YTD) reached N4.149 trillion.
- Domestic investors accounted for 86.94%, while foreign investors contributed 13.06%.
- This marks a shift from 2025, when foreign participation stood significantly higher at 36.47%.
- The data suggests that while foreign interest is recovering, domestic investors remain the primary drivers of market activity.
- Over the past two decades, both domestic and foreign participation in Nigeria’s equities market have expanded significantly, although local investors have consistently dominated.
- Domestic transactions grew by 160.83%, from N3.556 trillion in 2007 to N9.275 trillion in 2025.
- Foreign transactions increased by 329.87%, rising from N616 billion to N2.648 trillion over the same period.
- In 2025, domestic investors accounted for 78% of total market activity, compared to 22% for foreign investors.
While foreign participation has grown at a faster rate historically, it has remained structurally lower than domestic activity, reflecting Nigeria’s evolving market dynamics.
Expert views
According to Charles Fakrogha, Chief Executive of ECL Asset Management Limited, the rebound in foreign participation signals improving investor sentiment.
- “The strong rebound in March is largely a function of increased positioning by domestic institutional investors taking advantage of valuation opportunities.
- “Foreign participation has also surged partly due to Nigeria’s removal from the FATF Grey List and the reclassification by FTSE Russell, as well as improving macroeconomic clarity.”
- “We are likely to see more improvement in foreign participation as the September reclassification effect kicks in.
- Offshore fund managers are increasingly positioning in anticipation,” Fakrogha added, insisting that the FTSE Russell reclassification impact is yet to kick in.
Analysts at Cordros Capital also noted that Nigeria’s return to Frontier Market status could significantly boost capital inflows.
- “Market sentiment has improved, supported by strong corporate earnings and dividend announcements, as well as increased investor confidence following the FTSE Russell reclassification,” the firm stated in its Weekly Market Report.
The analysts believe that Nigeria’s return to Frontier Market status is expected to improve market flow dynamics, with inflows projected in the range of $840.00 million to $1.04 billion (about N1.13 trillion to N1.42 trillion).
What you should know
The recent reclassification of Nigeria’s market status by FTSE Russell from “Unclassified” to “Frontier Market” is expected to take effect in September 2026, potentially unlocking significant passive and active inflows.
While pointing out areas of further improvement, the FTSE Russell board acknowledged improvements in:
- Market infrastructure and trading systems
- Settlement efficiency (T+2 cycle)
- Regulatory framework and transparency
- Capital repatriation processes
- However, challenges remain around foreign exchange liquidity, transaction costs, and derivatives market depth.
The sharp rise in foreign participation in March signals a gradual return of offshore investors, but the market remains firmly driven by domestic liquidity.
With structural improvements underway and global index reclassification ahead, Nigeria’s equities market appears poised for stronger foreign inflows, even as domestic investors continue to provide the backbone of market activity.
