Transactions by domestic and foreign investors on the Nigerian Exchange Limited (NGX) reached ₦15.06 trillion between January and September 2026, amid economic reforms and improvements in key macroeconomic indicators.

Data from the exchange’s domestic and foreign portfolio participation report showed that domestic investors accounted for ₦13.52 trillion, representing 89.74 per cent of total transactions during the period.

Foreign investors contributed approximately ₦1.55 trillion, equivalent to 10.26 per cent of market activity.

The figures reflected a significant shift towards local participation compared with the corresponding period of 2025, when domestic investors accounted for 78.44 per cent of transactions and foreign investors contributed 21.56 per cent.

Domestic transactions more than doubled, rising by 102 per cent from ₦6.69 trillion in the first nine months of 2025 to ₦13.52 trillion in the same period of 2026.

Foreign transactions, however, declined by 16.01 per cent from ₦1.84 trillion to ₦1.55 trillion, indicating that the increase in overall market activity was driven primarily by Nigerian investors.

Institutional investors accounted for ₦8.36 trillion of domestic transactions, while retail investors contributed ₦5.15 trillion. In the corresponding period of 2025, institutional and retail transactions stood at ₦4.09 trillion and ₦2.60 trillion, respectively.

Market analysts attributed part of the increase in institutional participation to the National Pension Commission’s February 2026 decision to raise the equity investment limits for several Retirement Savings Account funds.

The revised limits allowed pension funds to allocate a greater proportion of their portfolios to ordinary shares, potentially increasing liquidity and supporting trading activity on the exchange.

Foreign Investment Flows Remain Weak

Despite the growth in total transactions, foreign portfolio investment flows remained under pressure.

Foreign portfolio outflows increased by 12.7 per cent to ₦913.61 billion between January and September 2026, compared with ₦810.39 billion in the corresponding period of 2025.

Meanwhile, foreign portfolio inflows fell by approximately 38.6 per cent, from ₦1.03 trillion to ₦632.35 billion.

Analysts linked the continued weakness in foreign participation partly to Nigeria’s earlier downgrade by global index provider FTSE Russell in 2023. They described the country's upgrade in September 2026 as an initial step towards improving its attractiveness to international investors.

Foreign investor inflows nevertheless recorded a sharp monthly increase in September, reaching ₦925.20 billion, up 249.53 per cent from ₦264.70 billion in August.

The Nigerian equities market recorded substantial gains during the first nine months of 2026, with market capitalisation increasing by ₦63.73 trillion.

Market capitalisation rose from ₦99.376 trillion at the beginning of the year to ₦163.105 trillion on September 30, representing an increase of 64.13 per cent.

Similarly, the NGX All-Share Index gained 95,598.64 points, or 61.43 per cent, rising from 155,613.03 points at the start of the year to 251,211.67 points at the end of September.

The gains occurred despite volatility in trading activity and fewer than five new listings during the period.

The exchange’s performance reflected increased trading activity and higher share prices, although the figures alone do not establish the extent to which broader economic improvements contributed to the gains.

Historical data also showed long-term growth in investor participation. Domestic transactions increased from ₦3.56 trillion in 2007 to ₦9.27 trillion in 2025, while foreign transactions rose from approximately ₦615.6 billion to ₦2.65 trillion over the same period.

However, the latest figures indicate that the Nigerian stock market has become increasingly dependent on domestic capital, particularly institutional investors, as foreign participation remains comparatively subdued.

The continued expansion of local investment activity, alongside efforts to attract international capital, will remain important to the market’s liquidity and its capacity to support businesses seeking funding through equity issuance.