Domestic investors have continued to lead trading activities on the Nigerian Exchange Limited (NGX), accounting for the majority of equity transactions in the first five months of 2025.
According to the NGX’s latest Domestic and Foreign Portfolio Investment Report, domestic transactions hit N2.42tn out of the total N3.41tn recorded between January and May, representing 70.83% of market activity.
Foreign portfolio investments, on the other hand, lagged behind, amounting to N996.03bn or 29.17% of total trades. Despite this disparity, foreign participation showed signs of recovery in May 2025, with transactions rising by 88.54% to N118.91bn, compared to N63.07bn in April. The increase is attributed to improving macroeconomic conditions and reforms in the foreign exchange market.
May saw a significant boost in overall trading volumes. Total equity transactions rose by 45.32% to N700.50bn, up from N482.04bn in April. This surge was primarily driven by domestic investors, whose activity jumped 38.81% to N581.59bn.
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Within the domestic investor segment, retail investors were particularly active. Retail trades soared by 86.12% to N337.46bn in May, outpacing institutional investors, whose participation rose marginally by 2.72% to N244.13bn.
Compared to May 2024, when transactions totalled N355.38bn, equity trading in May 2025 nearly doubled, showing a 97.11% increase. Year-to-date, total market activity has grown by more than 51%, from N2.25tn in the first five months of 2024 to N3.41tn this year, indicating growing investor confidence.
In the last eighteen years, the NGX has seen a 33.15% increase in domestic trading and a 38.31% increase in overseas transactions. The NGX credits this growth to enhanced retail investor education, improved digital access, and confidence built by monetary policy tightening and FX reforms implemented by the Central Bank of Nigeria.
