Foreign investor outflows on the Nigerian Exchange Limited rose by 9.12 per cent to N72.32bn in February 2026, despite a significant increase in inflows, highlighting continued cautious sentiment among offshore investors.
This was revealed in the latest Domestic and Foreign Portfolio Investment Report released by the Nigerian Exchange Limited, which tracks trading activity on the Nigerian equities market.
According to the report, foreign investor participation improved in February compared to January, but capital withdrawals continued to exceed inflows during the period.
Foreign inflows increased by 39.39 per cent to N66.71bn in February from N47.86bn recorded in January. However, foreign outflows also climbed by 9.12 per cent to N72.32bn, up from N66.28bn in the previous month.
The figures resulted in a net foreign outflow of N5.61bn in February, a notable improvement from the N18.42bn net outflow recorded in January.
Overall foreign transactions rose by 21.81 per cent to N139.03bn in February from N114.14bn in January, indicating a modest recovery in participation by offshore investors.
Despite the improvement, foreign investors still withdrew more funds than they injected into the market, reflecting ongoing profit-taking and cautious positioning amid macroeconomic uncertainties.
The report showed that domestic investors continued to dominate trading activity on the exchange during the review period.
Total market transactions surged by 78.93 per cent month-on-month to N1.542tn in February, largely driven by domestic participation.
Foreign participation accounted for only 9.01 per cent of total market transactions, down from 13.24 per cent recorded in January, while domestic investors made up 90.99 per cent of total trading activity.
Within the domestic segment, institutional investors led the market with transactions valued at N854.83bn, significantly ahead of retail investors who recorded N548.50bn.
Market analysts noted that the stronger growth in inflows relative to outflows suggests cautious re-entry by foreign investors, although it was not sufficient to reverse the negative net position.
Data from the Nigerian Exchange Limited showed that January recorded a sharp net outflow as foreign inflows lagged significantly behind withdrawals.
February’s figures, however, indicate a moderation in capital flight as inflows improved and the net exit narrowed.
Nevertheless, the continued rise in outflows signals lingering concerns about Nigeria’s macroeconomic environment.
Analysts say sustained foreign investor confidence will depend on stronger macroeconomic stability, improved policy clarity, and consistent economic reforms capable of attracting and retaining long-term capital in the Nigerian equities market.
