Foreign portfolio investment in Nigeria’s stock market recorded a significant increase in February 2026, rising by 39.4% to N66.71 billion from N47.86 billion in the same period of 2025. Data released by the Nigerian Exchange Limited (NGX) highlighted a steady rebound in foreign participation, signaling renewed investor confidence in the market.
Despite the rise in inflows, foreign investment outflows also increased by 9.1%, climbing to N72.32 billion in February from N66.28 billion in January. This suggests that while investor interest is improving, capital exits remain a factor in overall market dynamics.
On a year-to-date basis ending February 2026, foreign inflows surged by 162.1% to N114.57 billion, compared to N43.71 billion recorded during the same period in 2025. This sharp increase reflects stronger momentum in foreign capital participation relative to the previous year.
Overall activity in the market also witnessed substantial growth. Total transactions on the NGX rose by 78.93% to N1.54 trillion in February 2026, up from N862 billion in January. Similarly, year-to-date transactions climbed by 115.4% to N2.404 trillion, compared to N1.116 trillion in the corresponding period of 2025.
Domestic investors continued to dominate trading activity, accounting for approximately 82% of total transactions. Within this segment, institutional investors outperformed retail participants by 22%, underscoring stronger participation from large-scale market players.
Retail transactions increased by 52.42%, rising from N359.86 billion in January to N548.50 billion in February. However, institutional investment recorded a more pronounced growth of 120.33%, expanding from N387.97 billion to N854.83 billion over the same period.
Commenting on the trend, investment banker and stockbroker Tajudeen Olayinka attributed the surge in foreign inflows to improving macroeconomic stability. He noted that strengthening foreign reserves, easing inflationary pressures, and moderating interest rates are contributing to renewed investor confidence.
He further stated that the ongoing economic reforms under President Bola Ahmed Tinubu, though initially challenging, are beginning to yield positive outcomes. However, he cautioned that structural issues must still be addressed to prevent potential capital flow reversals in the face of external shocks.
