April 8, 2025/CSL Research

in February 2025, accounting for a significant 91.63% of the total transaction value, while Foreign Portfolio Investors (FPIs) contributed just 8.37%. This strong domestic participation, consistent over recent years, has played a crucial role in strengthening the market by providing stability and resilience.

The solid local presence has helped cushion the market from external shocks and global financial turbulence—though not entirely—resulting in relatively moderate volatility despite ongoing global economic uncertainties.

Total transactions on the Nigerian Exchange (NGX) for January and February 2025 stood at ₦1.12 trillion, reflecting a 10.61% year-on-year (y/y) increase compared to ₦1.01 trillion recorded during the same period in 2024. Domestic portfolio transactions remained dominant, totalling ₦1.00 trillion. Of this amount, retail investors contributed ₦481.86 billion, while institutional investors accounted for ₦520.50 billion. This represents an increase from the same period in 2024, when retail and institutional investors contributed ₦447.52 billion and ₦442.96 billion respectively, out of a total domestic transaction value of ₦890.48 billion.

In contrast, Foreign Portfolio Investor (FPI) activity declined, with total transactions amounting to ₦114.16 billion for January and February 2025—a 4.00% y/y drop from ₦118.92 billion recorded in the same period of 2024.

The significant decline in foreign investor participation in the Nigerian stock market during February 2025 can be attributed to several global economic events that heightened market volatility and risk aversion. In early February 2025, U.S. President Donald Trump introduced sweeping tariffs on imports, including a 25% duty on autos and auto parts. 

This move sparked fears of a global trade war, leading to significant sell-offs in global stock markets. Affected countries, notably China, responded with their own tariffs, exacerbating trade tensions and  increasing uncertainty in global markets. The heightened uncertainty prompted investors to withdraw from emerging markets, including Nigeria, seeking safer assets. This capital flight was driven by concerns over potential economic slowdowns resulting from the trade disputes.

Click here to download full report: CSL Nigeria Daily – 08 April 2025 – Equities.pdf​​​