Domestic Investors Drive NGX Activity with ₦5.46tn Trades in Jan–Aug 2025

Domestic investors accounted for ₦5.46 trillion in transactions on the Nigerian Exchange (NGX) between January and August 2025, underlining a clear shift in market momentum towards local participation as foreign activity stayed soft.

Latest NGX data shows Nigerian institutional and retail players contributed the bulk of trading during the eight-month period. Market analysts said the pattern points to stronger confidence in the local capital market, even as businesses and households continue to navigate inflation, exchange-rate pressure and broader global uncertainty.

Institutional investors, including pension funds and asset managers, were identified as major drivers of turnover. Retail participation also expanded, helped by mobile-first brokerage platforms and easier access to online trading tools. Analysts noted that more Nigerians are now using equities as part of a wider strategy to diversify beyond traditional savings, fixed income and property.

Market participants linked this behaviour partly to ongoing policy changes. Reforms around the foreign exchange market, fuel subsidy removal and fiscal adjustments have created short-term strain in parts of the economy, but they have also changed how investors position capital. In that environment, equities have increasingly been viewed as a potential inflation hedge and a route to long-term value preservation.

By contrast, foreign investors remained relatively cautious. Analysts cited lingering concerns around currency risk, capital repatriation and macroeconomic stability as key reasons offshore inflows have not fully normalised. Although some foreign players have started to return selectively, domestic demand has remained the defining force in 2025 trading.

Operators on the exchange said this trend is strategically important for market stability. A deeper local investor base, they argued, reduces dependence on volatile cross-border flows and can limit exposure to sudden global risk-off shocks. In their view, the ₦5.46 trillion domestic transaction figure demonstrates both resilience and latent depth in Nigeria’s capital market.

Technology has also accelerated inclusion. Digital onboarding, market education content and app-based trading interfaces have made participation easier for first-time and smaller investors. This supports NGX’s broader goal of widening access and improving market participation across demographic groups.

Still, analysts warned that constraints remain. High inflation continues to weaken disposable income, while elevated yields in fixed-income instruments can pull funds away from equities. Without sustained macroeconomic stability and lower borrowing costs over time, they said, growth in domestic equity allocation could face limits.

NGX maintained an optimistic outlook, pointing to reform continuity, improving company earnings and activity in sectors such as banking, telecommunications and energy as potential drivers of further interest. Companies that posted stronger first-half results have already supported trading volumes and sentiment.

Regulatory credibility was also highlighted as a factor in confidence. The Securities and Exchange Commission (SEC) has repeatedly emphasised investor protection, transparency and tighter governance standards, including stronger disclosure and reporting expectations for listed firms.

The scale of domestic participation is significant in the context of Nigeria’s recovery and development agenda. Policymakers continue to frame the capital market as a channel for mobilising long-term funding for infrastructure, industrial growth and innovation, while reducing pressure on external borrowing.

Looking ahead, analysts expect local investors to remain central to market direction unless foreign inflows recover more decisively. They said durable progress on exchange-rate stability and capital mobility will be crucial if Nigeria wants to attract larger and more consistent offshore participation. For now, the 2025 trend is clear: domestic investors are carrying the market, and their role is shaping the NGX’s trajectory.