Market News

Nigeria’s equity market recorded a historic performance in 2025 as total transactions rose sharply to N11.92tn, driven by a resurgence in foreign portfolio participation and sustained dominance by domestic investors.

According to the Domestic & Foreign Portfolio Participation in Equity Trading Summary of Transactions as of 31 December 2025, released by the Nigerian Exchange Limited on Thursday, market activity more than doubled from N5.59tn in 2024 to N11.92tn in 2025, reflecting a year-on-year growth of 113.39 per cent.

Domestic investors remained the backbone of market activity throughout the year, accounting for 77.79 per cent of total transactions with trades valued at N9.27tn. Foreign investors contributed the remaining 22.21 per cent, equivalent to N2.65tn, signalling a notable recovery in offshore participation after years of cautious positioning.

On a monthly basis, market momentum accelerated strongly toward year-end. Total transactions increased by 42.13 per cent from N971.18bn in November 2025 to N1.38tn in December 2025. Compared with December 2024, when transactions stood at N673.67bn, market activity expanded by 104.91 per cent, underscoring the strength of the 2025 rally.

The December surge was largely supported by foreign buying. Foreign transactions jumped by 182.70 per cent from N162.04bn in November to N458.09bn in December, driven primarily by significant block trades. Despite this sharp rise, domestic investors continued to outperform foreign investors, with domestic transactions exceeding foreign trades by approximately 34 per cent during the month.

Domestic transactions rose by 13.99 per cent month-on-month, increasing from N809.14bn in November to N922.31bn in December. A closer look at domestic participation shows that institutional investors maintained a clear lead over retail investors. Institutional trades increased by 13.63 per cent from N531.21bn to N603.62bn, while retail transactions grew by 14.67 per cent from N277.93bn to N318.69bn. Overall, institutional investors outperformed retail investors by about 30 per cent, highlighting the growing influence of large capital pools in the market.

Historical data further reinforce the structural shift in Nigeria’s equity market. Over the past 19 years, domestic transactions expanded by 160.82 per cent, rising from N3.56tn in 2007 to N9.27tn in 2025. Foreign transactions grew even faster, increasing by 329.87 per cent from N615.6bn to N2.65tn over the same period. However, domestic investors have consistently retained market leadership, accounting for nearly 78 per cent of total transactions in 2025.

Overall, the sharp rise in both domestic and foreign participation pushed total market transactions to their highest level in nearly two decades. The combination of strong local investor confidence and renewed foreign interest positions Nigeria’s stock market as one of its most active in recent history, although the sustainability of foreign inflows beyond episodic block trades remains a key issue for market watchers.