Renewed interest is emerging among foreign investors in Nigeria’s stock market after a prolonged period of caution, supported by improving currency stability and a broader equities rally.
Figures from the NGX Domestic and Foreign Portfolio Investment report indicate that foreign trading on the Nigerian Exchange surged by 107.74% in March 2026, reaching approximately $215 million (N288.82 billion), compared to about $107 million (N139.65 billion) in February.
This resurgence contributed to higher overall market activity, with total transactions increasing by 13.1% month-on-month to around $1.30 billion (N1.744 trillion) in March.
A major factor behind the growth was the sharp rise in foreign inflows, which jumped to roughly $135 million (N181.77 billion) from $54 million (N72.32 billion) in the previous month.
The trend signals that international investors are beginning to find Nigerian stocks attractive again, especially following recent market corrections and improved access to foreign exchange.
For years, Nigeria has faced challenges in sustaining foreign portfolio investment due to currency instability and issues with repatriating funds.
However, recent policy changes—such as moves to unify exchange rates and enhance transparency in the FX market—are gradually rebuilding investor confidence.
Despite this progress, domestic investors still dominate trading activity. In March, local participants accounted for over 83% of total transactions, valued at about $1.08 billion (N1.455 trillion).
Institutional players, including pension funds and asset managers, drove most of this activity, significantly outweighing retail investor participation.
This aligns with an ongoing pattern where Nigerian institutional investors continue to support fundamentally strong companies, even during periods when foreign investors scale back.
The return of foreign capital is also happening alongside a strong market performance.
In the first quarter of 2026, total transactions reached approximately $3.08 billion (N4.148 trillion), marking an 85.9% increase compared to the same period last year.
The rally has propelled the NGX All-Share Index to record levels in recent months, drawing fresh attention from global investors.
Nevertheless, the market outlook remains closely linked to broader economic conditions. Factors such as inflation, interest rate policies by the Central Bank of Nigeria, and the sustainability of foreign exchange reforms will shape future investor sentiment.
At present, the March figures highlight an early but meaningful turnaround, with international capital gradually returning to one of Africa’s largest equity markets.