Local investors triple market footprint as inflows hit N2.74trn

Domestic investors have emerged as the dominant force in the equities market, tripling their footprint on the Nigerian Exchange (NGX) in the first four months of 2026 and driving a surge in overall market liquidity.

Data from the NGX Foreign Portfolio Investment (FPI) reports show that domestic inflows climbed to N2.74 trillion between January and April 2026, representing a 191 per cent increase from N940.8 billion recorded in the corresponding period of 2025.

The sharp rise in local participation helped push total inflows into the market to about N3.05 trillion, more than double the N1.36 trillion recorded in the first four months of last year.

This figure underscore a significant shift in the structure of the Nigerian equities market, with domestic investors accounting for nearly 90 per cent of total inflows in the review period, compared with about 69 per cent a year earlier.

Monthly data show domestic inflows rising from N381.36 billion in January to N747.36 billion in February, before peaking at N813.17 billion in March and remaining elevated at N797.96 billion in April. The sustained momentum contrasts sharply with the same period in 2025, when monthly domestic inflows ranged between N205.95 billion and N281.28 billion.

While local investors strengthened their hold on the market, foreign participation moderated. Foreign inflows stood at N312.46 billion in the first four months of 2026, down 25.7 per cent from N420.33 billion recorded in the corresponding period of 2025.

However, market operators note that the 2025 foreign inflow figure was largely boosted by an exceptional N349.97 billion inflow in March, a level far above the trend recorded in other months. Excluding that spike, foreign participation in 2025 was considerably weaker.

In 2026, foreign inflows showed a steadier pattern, rising from N47.86 billion in January to N66.71 billion in February and N107.05 billion in March, before easing to N90.84 billion in April.

According to the Managing Director, Crane Securities, Mike Eze, the widening gap between domestic and foreign inflows suggests that local institutional investors, pension fund administrators, asset managers and retail investors are increasingly providing the liquidity underpinning market activity.

“The development comes amid improving investor confidence in selected equities, attractive corporate earnings and a gradual repositioning of portfolios in response to evolving macroeconomic conditions”, Eze said.

For the NGX, the trend signals growing resilience through domestic capital mobilisation, reducing reliance on often volatile foreign portfolio flows. Yet Eze argues that sustained foreign participation remains important for deepening liquidity, enhancing market depth and strengthening international investor confidence in Nigeria’s capital market.

“With domestic inflows already approaching N3 trillion within four months, the performance of local investors is likely to remain a key determinant of market direction through the rest of the year, even as policymakers continue efforts to attract more foreign capital into the economy”, he said.