Nigeria: Foreign Investment in Nigerian Equities Drops 92 Percent in April

2 June 2025
Daba Finance (Abidjan)

TLDR

  • Foreign portfolio investment into Nigeria's equities market fell sharply by 92.39% in April 2025, with inflows dropping to N26.64 billion, compared to N349.97 billion in March
  • The decline reflects the absence of large block trades that boosted March activity and growing caution among global investors
  • Total foreign transactions fell by 90.99%, from N699.89 billion in March to N63.07 billion in April, with outflows exceeding inflows at N36.43 billion

Foreign portfolio investment into Nigeria's equities market fell sharply by 92.39% in April 2025, with inflows dropping to N26.64 billion, compared to N349.97 billion in March, according to data from the Nigerian Exchange (NGX). The decline reflects the absence of large block trades that boosted March activity and growing caution among global investors.

Total foreign transactions fell by 90.99%, from N699.89 billion in March to N63.07 billion in April, with outflows exceeding inflows at N36.43 billion, resulting in a net capital outflow of N9.79 billion for the month. Foreign participation in the market declined to 13.08%, from 62.74% a month earlier.

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Overall market activity also dropped by 56.79%, from N1.115 trillion to N482.04 billion. However, year-on-year, April activity was up 39.22% from N346.23 billion in April 2024. Domestic investors dominated, accounting for 86.92% of April trade. Institutional investors increased activity by 8.77%, while retail investors reduced participation by 8.02%. Institutional trades have outperformed retail all year.

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Key Takeaways

April's sharp fall in foreign investment underscores how vulnerable Nigeria's equities market remains to external shocks. The plunge coincided with heightened global volatility after U.S. President Donald Trump imposed a 14% tariff on Nigerian exports, prompting fears about trade disruptions and investor risk aversion. Despite a brief surge in foreign activity in March, year-to-date foreign flows remain negative, with a net outflow of N36.48 billion. This trend shows continued hesitation among international investors facing global trade tensions, currency fluctuations, and macroeconomic uncertainty. While domestic institutions continue to anchor the market, with institutional trades reaching N976.66 billion YTD versus N860.29 billion for retail, the market's dependence on local capital is becoming more entrenched. The Central Bank of Nigeria's $200 million FX intervention in April highlights the fragility of external confidence.

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