Nigeria Records N161.05bn Net Foreign Portfolio Inflows in Equities for 2025
Nigeria’s equity market closed 2025 with a net foreign portfolio inflow of ₦161.05 billion, reflecting a cautious but improving appetite from offshore investors despite persistent volatility. Total foreign inflows for the year amounted to ₦1.40 trillion, marginally ahead of outflows of ₦1.24 trillion, leaving the market with a fragile positive balance.
This marks a reversal from 2024, when net outflows stood at ₦59.21 billion as foreign investors pulled more capital than they injected.
The flow pattern in 2025 was uneven, with September alone accounting for ₦263.30 billion in net inflows, more than the total net position for the year. In that month, inflows surged to ₦325.46 billion while outflows were contained at ₦62.16 billion, pointing to large block trades, index rebalancing, or institutional reallocations.
By contrast, most other months recorded modest or negative balances. March was nearly neutral at ₦0.05 billion, while May, June, and August saw incremental gains of ₦13.31 billion, ₦6.33 billion, and ₦18.47 billion, respectively. July posted a sharp net outflow of ₦44.99 billion, followed by losses of ₦36.66 billion in November and ₦10.51 billion in December, underscoring the tendency of foreign investors to take profits and exit during rallies.
Overall foreign portfolio transactions surged to ₦2.65 trillion in 2025, more than tripling the ₦852.03 billion recorded in 2024, representing a 210.72 per cent year-on-year increase. Inflows rose by 254.24 per cent while outflows climbed 172.86 per cent, highlighting the scale of foreign activity on both sides of the market.
December’s gross flows of ₦223.79 billion in inflows and ₦234.30 billion in outflows were largely driven by block trades, but the month still ended with a net outflow, showing that large deals did not translate into sustained buying interest.
The year’s outcome reflects selective engagement rather than long-term conviction investing. Foreign investors remained highly sensitive to foreign exchange risks, macroeconomic signals, and price rallies, preferring tactical entries and exits over durable commitments.
Nigeria’s FX market reforms, including unification and improved price discovery, reduced repatriation risk and reopened access, but lingering uncertainty kept participation episodic. Global liquidity conditions and frontier market rotations also played a role, with expectations of easing monetary policy prompting tactical inflows, though competition from other frontier markets limited Nigeria’s share.
While the headline net inflow is encouraging, the reliance on a single month’s surge highlights structural fragility in foreign investor confidence. For Nigeria to convert sporadic inflows into long-term capital commitments, greater macroeconomic stability, clearer FX policies, and stronger corporate earnings visibility will be essential.
