Net Foreign Portfolio Inflows into Nigerian Equities Hit ₦161.05bn in 2025
Nigeria’s equities market closed 2025 on a positive note as foreign investors returned cautiously, with the country recording a net foreign portfolio investment (FPI) inflow of ₦161.05 billion for the year. The figures point to a gradual rebuilding of offshore investor confidence despite persistent macroeconomic and market risks.
According to data compiled from the Nigerian Exchange (NGX) Domestic and Foreign Portfolio Investment Report and reported by Nairametrics, total foreign inflows into Nigerian equities reached about ₦1.40 trillion in 2025, marginally higher than foreign outflows of approximately ₦1.24 trillion, resulting in the net positive position for the year.
A cautious return of foreign investors
The ₦161.05 billion net inflow represents a notable turnaround from periods of sustained foreign sell-offs witnessed in recent years, largely driven by foreign exchange illiquidity, policy uncertainty, and global risk-off sentiment. While inflows remained modest for most of the year, analysts note that the overall balance suggests that foreign investors are slowly reassessing Nigerian equities as valuations become more attractive.
What drove the inflows
Several factors supported the renewed interest in Nigerian equities. These include improved price discovery in the foreign exchange market, relatively high yields across financial assets, and expectations that ongoing economic reforms could stabilize macroeconomic conditions over the medium term. The NGX also benefited from increased activity in large-capitalisation stocks, particularly in the banking and consumer goods sectors, which tend to attract foreign portfolio investors.
In addition, broader capital market data shows that foreign portfolio transactions on the NGX expanded significantly during the year, with periods of strong inflows in the first half of 2025 before moderating in the second half amid global market volatility.
Looking ahead, analysts expect foreign portfolio investment in Nigerian equities to remain selective. Sustained FX liquidity, policy consistency, and improvements in market transparency will be critical in attracting longer-term foreign capital. If these conditions hold, the modest gains recorded in 2025 could lay the groundwork for stronger foreign participation in the years ahead.
Overall, Nigeria’s ₦161.05 billion net foreign portfolio investment in equities in 2025 signals a cautious but meaningful step toward restoring investor confidence in the country’s capital market after a challenging period.
Comments