Foreign Portfolio Investments in Nigeria Double to ₦1.45 Trillion in 8 Months
Foreign investors are making a strong comeback to the Nigerian stock market, with transactions more than doubling in 2025 amid stronger forex inflows, improved reforms, and renewed confidence in the economy.
The Numbers at a Glance
• Total FPI (Jan–Aug 2025): ₦1.45 trillion
↗️ Up 122% from ₦655.47 billion in Jan–Aug 2024.
• Inflows (new money entering Nigeria): ₦704.87 billion (vs. ₦299.73bn in 2024) → +135%.
• Outflows (funds leaving Nigeria): ₦748.23 billion (vs. ₦355.74bn in 2024) → +110%.
• Share of market held by FPIs: 21% (vs. 18.9% in 2024).
• Domestic transactions: Rose 93.7% to ₦5.46 trillion (vs. ₦2.82trn in 2024).
• Total NGX transactions (domestic + foreign): ₦6.92 trillion (vs. ₦3.48trn in 2024).
Peak Months & Market Drivers
• August 2025: ₦171.81bn in FPI activity – inflows ₦95.14bn vs. outflows ₦76.67bn.
• March 2025: Record ₦699.89bn turnover, mostly from wholesale investments in banks.
Analysts say FPIs are being drawn by:
• A stable naira supported by resilient forex liquidity.
• Macroeconomic reforms: subsidy removal, FX unification, market-based pricing.
• Corporate strength: strong H1 earnings, especially from banks, plus big interim dividends.
• Banking recapitalisation and new listings (like Aradel).
• Attractive valuations due to naira devaluation (Nigerian stocks look cheap to foreigners).
Why This Matters
• Rising inflows show renewed foreign confidence in Nigeria’s economy.
• Strong forex inflows are helping stabilise the naira.
• More liquidity means higher turnover on the NGX, creating opportunities for investors.
Expert Views
• Cordros Capital: The dovish shift in global monetary policy + weaker treasury yields could further boost foreign appetite for naira assets.
• Wale Edun (Finance Minister): Attributed inflows to Tinubu’s reforms, noting ₦ savings equivalent to 5% of GDP are now being redirected to infrastructure, healthcare, and education.
• Market Analysts: Banking recapitalisation, oil sector reforms, and strong corporate earnings are the main attractions.
✅ Takeaway for Investors: Foreign portfolios crossing ₦1.45 trillion is a big confidence boost. With the naira stabilising, reforms holding steady, and corporates reporting strong earnings, Nigeria is looking like a magnet for both local and global investors in 2025.
Foreign investors are making a strong comeback to the Nigerian stock market, with transactions more than doubling in 2025 amid stronger forex inflows, improved reforms, and renewed confidence in the economy.
The Numbers at a Glance
• Total FPI (Jan–Aug 2025): ₦1.45 trillion
↗️ Up 122% from ₦655.47 billion in Jan–Aug 2024.
• Inflows (new money entering Nigeria): ₦704.87 billion (vs. ₦299.73bn in 2024) → +135%.
• Outflows (funds leaving Nigeria): ₦748.23 billion (vs. ₦355.74bn in 2024) → +110%.
• Share of market held by FPIs: 21% (vs. 18.9% in 2024).
• Domestic transactions: Rose 93.7% to ₦5.46 trillion (vs. ₦2.82trn in 2024).
• Total NGX transactions (domestic + foreign): ₦6.92 trillion (vs. ₦3.48trn in 2024).
Peak Months & Market Drivers
• August 2025: ₦171.81bn in FPI activity – inflows ₦95.14bn vs. outflows ₦76.67bn.
• March 2025: Record ₦699.89bn turnover, mostly from wholesale investments in banks.
Analysts say FPIs are being drawn by:
• A stable naira supported by resilient forex liquidity.
• Macroeconomic reforms: subsidy removal, FX unification, market-based pricing.
• Corporate strength: strong H1 earnings, especially from banks, plus big interim dividends.
• Banking recapitalisation and new listings (like Aradel).
• Attractive valuations due to naira devaluation (Nigerian stocks look cheap to foreigners).
Why This Matters
• Rising inflows show renewed foreign confidence in Nigeria’s economy.
• Strong forex inflows are helping stabilise the naira.
• More liquidity means higher turnover on the NGX, creating opportunities for investors.
Expert Views
• Cordros Capital: The dovish shift in global monetary policy + weaker treasury yields could further boost foreign appetite for naira assets.
• Wale Edun (Finance Minister): Attributed inflows to Tinubu’s reforms, noting ₦ savings equivalent to 5% of GDP are now being redirected to infrastructure, healthcare, and education.
• Market Analysts: Banking recapitalisation, oil sector reforms, and strong corporate earnings are the main attractions.
✅ Takeaway for Investors: Foreign portfolios crossing ₦1.45 trillion is a big confidence boost. With the naira stabilising, reforms holding steady, and corporates reporting strong earnings, Nigeria is looking like a magnet for both local and global investors in 2025.