Domestic investors played a pivotal role in driving growth on the Nigerian Exchange Limited (NGX) in December 2025, with total portfolio transactions surging to N1.38 trillion—a 42.13 per cent increase from N0.97 trillion recorded in November, according to NGX data.
The exchange’s domestic and foreign portfolio investment (FPI) figures showed that local investors accounted for N0.92 trillion, representing 67 per cent of total market activity, while foreign investors contributed N458.09 billion, or 33 per cent. The data underscores the continued dominance of domestic funds in sustaining market liquidity.
Year-on-year, overall market activity also strengthened, rising 104.91 per cent compared with N673.67 billion recorded in December 2024. Analysts attributed the surge to improved liquidity conditions and growing investor confidence in Nigeria’s equities market.
A closer look at the figures reveals that domestic transactions increased 13.99 per cent from N0.809 trillion in November to N0.922 trillion in December. Foreign participation grew even more sharply, jumping 182.70 per cent from N162.04 billion in November to N458.09 billion, boosted largely by block trades that heightened both inflows and outflows. Foreign inflows rose to N223.79 billion, while outflows stood at N234.30 billion, reflecting active portfolio repositioning by overseas investors.
Despite the uptick in foreign activity, domestic investors continued to outperform, with transactions exceeding foreign trades by roughly 34 per cent, highlighting the crucial role of local investors in maintaining market depth and stability.
Within domestic trading, institutional investors remained the driving force, outperforming retail investors by 30 per cent. Institutional transactions rose 13.63 per cent from N531.21 billion in November to N603.62 billion in December, while retail trades increased 14.67 per cent to N318.69 billion.
Analysts noted that the strong performance in December reflects improving market sentiment, strategic portfolio rebalancing ahead of year-end, and sustained confidence in Nigeria’s equity market fundamentals. The dominance of domestic investors continues to provide a solid liquidity backbone, even amid fluctuating foreign participation.
