Total transactions by foreign portfolio investors (FPIs) at the Nigerian stock market rose by 211 per cent to N2.65 trillion in 2025, the highest in the history of the market.

The rate of participation by FPIs also increased by 696 basis points with foreign investors now accounting for more than one-fifth of transactions at the Nigerian market.

Trading data released yesterday by the Nigerian Exchange (NGX) showed that total foreign portfolio transactions rose from N852.03 billion in 2024 to N2.648 trillion in 2025.

The strong participation by foreign investors boosted total turnover at the NGX, with aggregate turnover by both domestic and foreign investors rising by 113.24 per cent to N11.92 trillion in 2025, as against N5.587 trillion in 2024.

Nigerians also remained bullish about the outlook of the economy with domestic transactions rising from N4.73 trillion in 2024 to N9.27 trillion in 2025.

The breakdown showed that foreign investors were more willing to retain their funds in Nigeria with more inflows than outflows.

Foreign inflows stood at N1.40 trillion as against outflows of N1.24 trillion 2025. Inflows and outflows had stood at N396.41 billion and N455.62 billion respectively.

There were also improvements across transactions by retail and institutional domestic investors. Turnover by retail domestic investors rose from N2.31 trillion in 2024 to N3.65 trillion in 2025 while institutional transactions increased from N2.42 trillion in 2024 to N5.62 trillion in 2025.

The NGX attributed increasing foreign and domestic participation at the market to gains of government’s macroeconomic reforms.

According to the Exchange, the bullish run at the market reflected broader policy reset that has redefined Nigeria’s economic outlook, including such decisive measures such as liberalisation of the naira, removal of fuel subsidies, and closer coordination between fiscal and monetary authorities.

Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Temi Popoola said much of the market’s resilience could be traced to a “wave of coordinated reforms” that have rebuilt confidence in the country’s financial architecture.

According to him, the market performance underscored renewed investor confidence and the resilience of Nigeria’s capital markets.

He said government’s reforms have redefined Nigeria’s economic outlook and restored a degree of macroeconomic stability.

He said: “The Nigerian capital market in 2025 demonstrated resilience despite domestic and global economic headwinds. This performance underscores the importance of policy consistency, purposeful reforms, and strategic collaboration in strengthening investor confidence and sustaining market growth.

“During the year, efforts to advance economic reforms and improve market structures helped support a stable environment for capital formation, while our continued investment in technology played a critical role in expanding access, enhancing transparency, and improving operational efficiency across the market”.

He commended President Bola Ahmed Tinubu for providing the policy clarity and reform momentum that have bolstered investor confidence.

According to him, the capital market has responded positively to improved macroeconomic coordination and clear reform direction, creating an enabling environment for sustainable investment.

Popoola assured that the NGX Group would continue to collaborate with regulators and stakeholders to attract quality listings, deepen liquidity, and expand retail participation, reinforcing the market’s position as a catalyst for sustainable economic growth.

Managing Director, GTI Capital, Mr. Kehinde Hassan, said investors appeared confident about the outlook for the Nigerian economy.

He noted that the stock market is the closest reflection of a country’s global economic rating as investors are sensitive to risks.

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr. Sehinde Adenagbe said the market performance has strong correlation with the economic reforms of the current government.

He said: “There is no gain saying that since President Tinubu took office in May 2023, Nigeria’s stock market has experienced strong growth and renewed investor interest. The NGX All-Share Index more than doubled, rising by around 136 per cent between 2023 and 2025, with market capitalisation expanding sharply and local and foreign participation strengthening”.

He added that further digitization of the economy and the capital market has smoothen the onboarding of the youthful demography of the country, especially through the fintech gateway created by the NGX Group, which has tremendously increased inclusiveness in the market.

According to him, the market performance reflected improved macroeconomic conditions, liquidity, and investor appetite.

He said: “We believe that these strong performances signal enhanced market confidence, partly driven by broader economic measures under the administration”.

He highlighted the enactment of the Investment and Securities Act (ISA) 2025 signed into law by President Tinubu, removal of Nigeria from the Financial Action Task Force (FATF)’s “grey list” and the reforms in the foreign exchange (forex) market as major impetus for the market.

According to him, the transparency and stability in the forex market have helped to reduce distortions, improving the predictability of pricing for foreign investors and businesses.

“Stable forex conditions have been widely cited as a contributor to increased foreign capital flows into equities and other financial instruments,” Adenagbe said.

He however called for more supportive policies that encourage new listings, including moribund state-owned-enterprises that can be turned around as well as incentives for long-term institutional investment.

“We also need more structural reforms, coordinated implementation, market infrastructure improvements and inclusive growth measures to sustain momentum and position Nigeria as a competitive driver of national economic growth and development. The issue surrounding the Capital Gains Tax (CGT) should be revisited to give the market clarity. More intentional approaches are needed to stamp out insecurity and acts of terrorism from the country as investors want to put their resources in secured environment,” Adenagbe said.