July 28, 2026/CSL Update
Foreign Portfolio Investment (FPI) activity on the Nigerian Exchange (NGX) recorded a modest improvement in June 2026, increasing by 1.7% month-on-month to ₦186.8 billion (US$135.4 million) from ₦183.6 billion (US$133.7 million) in May. Consequently, foreign investors accounted for 10.9% of total market turnover, up from 9.5% in the previous month.
Despite the slight increase in foreign participation, total market turnover declined to ₦1.7 trillion (US$1.2 billion) in June from ₦1.9 trillion (US$1.4 billion) in May, largely reflecting weaker domestic investor activity. Domestic transactions fell by 13.2% month-on-month to ₦1.5 trillion (US$1.1 billion) from ₦1.8 trillion (US$1.3 billion). Nevertheless, domestic investors remained the dominant market participants, accounting for 89.1% of total turnover, compared with 90.6% in May.
A breakdown of foreign transactions shows that the modest increase in overall FPI activity was driven entirely by higher foreign outflows. Foreign inflows declined by 18.2% month-on-month to ₦71.7 billion from ₦87.6 billion, while foreign outflows rose by 19.9% to ₦115.1 billion from ₦96.0 billion, resulting in a wider net foreign outflow during the month. On the domestic side, institutional investor activity moderated slightly to ₦994.5 billion from ₦1.0 trillion in May, comprising inflows of ₦487.3 billion and outflows of ₦507.2 billion. Retail investor activity also softened, declining to ₦532.3 billion from ₦726.3 billion, indicating a broad-based moderation in trading activity across both domestic investor segments.
Year-to-date, total market turnover has reached ₦9.6 trillion, more than double the ₦4.2 trillion recorded during the corresponding period of 2025. Domestic investors continue to drive market activity, accounting for ₦8.4 trillion, or 87.9% of total transactions, compared with ₦3.1 trillion (72.9%) in the same period last year. Foreign participation, while improving in absolute terms, remained relatively subdued, accounting for ₦1.2 trillion, or 12.1% of total market turnover, compared with ₦1.1 trillion in the same period last year. However, its share of market activity declined significantly from 27.1% recorded during the corresponding period of 2025, underscoring the continued dominance of domestic investors.
Despite intermittent profit-taking and episodes of heightened volatility, the Nigerian equities market has remained resilient in 2026, supported by strong corporate earnings, improving macroeconomic fundamentals, and continued policy reforms. Looking ahead, we maintain a constructive outlook on the market. Sustained earnings growth, improving macroeconomic stability, ongoing capital market reforms, the potential listing of Dangote Refinery, and Nigeria’s potential re-entry into the FTSE Frontier Market Index are expected to provide meaningful support for market liquidity, investor sentiment, and equity valuations.
Nonetheless, downside risks remain. Geopolitical tensions, persistent inflationary pressures, pre-election uncertainty, and tighter global financial conditions could weigh on investor A sentiment and capital flows.