Foreign portfolio investment on the Nigerian Exchange Limited (NGX) rebounded sharply in March 2026, with total foreign transactions surging by 107.74 per cent to N288.82 billion.
According to NGX Regulation Limited’s latest Domestic and Foreign Portfolio Investment report, overall market activity also strengthened, as total transactions rose by 13.10 per cent to N1.744 trillion in March, up from N1.542 trillion in February.
The report linked the recovery in foreign participation to a sharp increase in inflows, which climbed from N72.32 billion in February to N181.77 billion in March. This suggests renewed investor confidence, with international investors taking advantage of improved valuations in Nigerian equities, supported by better foreign exchange liquidity and recent market re-ratings.
Despite the surge in foreign activity, domestic investors continued to dominate the market, accounting for 83.44 per cent of total transactions. Domestic participation stood at N1.455 trillion, with institutional investors outperforming retail investors by 26 per cent.
Institutional transactions alone reached N914.23 billion, highlighting sustained confidence among local pension funds and asset managers, which remain bullish on high-quality Nigerian equities.
The uptick in foreign inflows comes amid ongoing fiscal and monetary reforms aimed at stabilising the naira and boosting investor confidence. Historically, foreign participation in Nigeria’s capital market has been constrained by currency volatility and challenges around capital repatriation. However, the sharp month-on-month increase points to improving sentiment, aided by enhanced transparency in the Nigerian Autonomous Foreign Exchange Market.
On a year-to-date basis, total market transactions for the first quarter of 2026 rose to N4.148 trillion, representing an 85.87 per cent increase compared to N2.232 trillion recorded in the same period of 2025. This reflects a broader market rally that has pushed the NGX All-Share Index to record highs over the past year.
Over a longer horizon, NGX data shows domestic transactions have grown by 160.83 per cent over 19 years. While foreign participation has fluctuated, the overall trend remains positive, reinforcing the exchange’s position as an attractive destination for both local and international investors.
Looking ahead, analysts expect institutional investors to continue driving market activity in the second quarter, while foreign participation will likely remain sensitive to macroeconomic indicators such as inflation and interest rate decisions by the Central Bank of Nigeria.
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