Foreign portfolio investment in Nigerian stock market rises by 127% in 2024
Agency Report
Foreign Portfolio Investments (FPIs) into Nigeria’s stock market increased by 126.8 per cent in 2024, reaching N396.41 billion ($274.6 million) compared to N174.82 billion ($121.1 million) in 2023.
Financial analysts attribute this surge to the monetary policy stance of the Central Bank of Nigeria (CBN), which has bolstered interest earnings on portfolio investments, making Nigerian assets more attractive to foreign investors.
Despite the rise in inflows, foreign outflows also sent up by 93.2 per cent, rising to N455.62 billion ($315.6 million) from N235.82 billion ($163.4 million) in 2023, indicating sustained capital movement in and out of the market.
According to data from the Nigerian Exchange Limited (NGX), total foreign transactions—including inflows and outflows- doubled, growing by 107.5 per cent year-on-year (YoY) to N852.03 billion ($590.2 million) in 2024 from N410.64 billion ($284.4 million) in the prior year.
Domestic Investors continued to dominate Market Transactions while foreign activity increased, domestic investors remained dominant, accounting for 84.7 per cent of the total N5.586 trillion ($3.87 billion) in transactions on the NGX in 2024.
Retail investors transaction value went to N2.306 trillion ($1.6 billion) in 2024, rising from N1.12 trillion ($775 million) reported in 2023, indicating a surge of 105.9 per cent l.
Institutional investors also expanded their market participation, executing N2.428 trillion ($1.7 billion) in trades, an 18.5 per cent rise from N2.047 trillion ($1.42 billion) in 2023.
However, total transactions at the NGX in December alone rise by 52.3 per cent from N442.34 billion ($305.5 million) in November to N673.66 billion ($465.7 million) and
Compared to December 2023, overall transactions jumped 56.1 per cent YoY, reflecting sustained investor confidence in Nigerian equities.
Analysts said that the increase in FPI is a sign of stronger investor confidence, FX market impact.
They also view the increased foreign participation as a positive signal for Nigeria’s capital markets and the broader economy.
