Local Investors Sustain Market Leadership As Domestic Deals Hit ₦6.7tn In Nine Months

Local investors have continued to dominate trading activities on the Nigerian Exchange Limited (NGX), as total domestic transactions surged to about ₦6.697trn in the first nine months of 2025, significantly outpacing foreign transactions, which stood at ₦1.841trn during the same period.

The latest Domestic and Foreign Portfolio Investment Report released by the NGX shows that domestic investors maintained a firm grip on market activity, accounting for roughly 78 per cent of total transactions recorded between January and September 2025.

This reflects growing investor confidence in local equities despite macroeconomic headwinds and currency volatility.

According to the report, total market turnover rose sharply by 78.5 per cent to ₦1.621trn in September 2025, compared with ₦908.38bn recorded in August.

The figure also represented a 228.9 per cent increase when compared to ₦493.01bn recorded in September 2024, underscoring renewed trading momentum on the Exchange.

The analysis further showed that in September 2025 alone, transactions by domestic investors outperformed those by foreign investors by about 52 per cent, reaffirming the deepening role of local market participants.

Domestic transactions increased by 67.5 per cent from ₦736.57bn in August to ₦1.234trn in September, while foreign transactions rose by 125.6 per cent from ₦171.81bn to ₦387.62bn during the same period.

Within the domestic segment, institutional investors continued to drive market activity, outperforming retail investors by 54 per cent.

Institutional participation grew substantially by 143.1 per cent to ₦955.26bn in September from ₦392.90bn in August, reflecting increased trading from pension funds, asset managers, and other large investment houses.

In contrast, retail transactions declined by 18.9 per cent to ₦278.57bn from ₦343.67bn in the previous month, indicating that individual investor participation slowed slightly.

A long-term review of trading patterns on the Exchange revealed that domestic transactions have remained the backbone of market activity over the past 18 years.

Between 2007 and 2024, domestic transactions increased by 33.2 per cent from ₦3.56trn to ₦4.73trn, while foreign transactions rose by 38.3 per cent from ₦616bn to ₦852bn within the same period.

By 2024, domestic investors accounted for approximately 85 per cent of total transactions on the Exchange, while foreign investors contributed the remaining 15 per cent.

Analysts said this trend reflects both improved local investor education and confidence, as well as the impact of persistent foreign exchange liquidity constraints that have kept foreign participation subdued.

Market observers note that institutional investors are likely to sustain their dominance in the months ahead, driven by stronger corporate earnings, attractive dividend yields, and opportunities in the fixed-income and equities markets.

The NGX said the surge in local participation continues to reinforce the resilience of the domestic capital market and underscores its role as a key platform for mobilising long-term funds to support Nigeria’s economic growth.