The Nigeria’s foreign portfolio inflow through the stock market increased sharply by 845.9% in two years as at September 2025, to N1.03 trillion against the figure of N108.93 billion in 2023.

Conversely the foreign investment outflow increased by 443.6 % to N810.39 billion in the two year period as at September 2025 to N810.39 billion from N149.09 billion in the same period of 2023.

The breakdown of the investment flows contained in the report released by the Nigerian Exchange Limited, NGX, on “Domestic and Foreign Portfolio Participation in Equity Trading” revealed that foreign transactions, which comprise of inflow and outflow, grew to N1.8 trillion in the two year period against N258.02 billion in 2023, representing a 613.4% rise.

A further review show that total transactions by both foreign and domestic investors in the two year period grew by 214.8% to N8.53 trillion from N2.71 trillion. Meanwhile, the transactions in the NGX attributed to domestic investors outperformed the foreign transactions by 2,495 %, with domestic transactions hitting N6.69 trillion as against N258.02 billion for foreign transactions in 2023.

The domestic transactions grew by 172.6 % in two years to N6.69 trillion from N2.454 trillion in 2023.

Commenting on the dynamics, Tajudeen Olayinka, Investment Banker/ Stockbroker, said: “ I think it tells the story behind the growing stability in the foreign exchange market. A situation of continued accretion to foreign reserves and declining inflation and interest rate. It gives credence to the forward thinking and inevitable Adjustment Program embarked upon by the administration of President Bola Ahmed Tinubu in 2023, which though, came with pain, but a necessary pill that must be swallowed to address some of the nagging issues around macroeconomic imbalances.

“So, to this extent, the rising foreign portfolio inflows means well for the Nigerian economy and markets in the immediate to near term, but other outstanding structural issues must also be addressed by government as quickly as possible, to deal with a possible reversal of capital flow that could arise from external shocks. “Until inflation and interest rate moderate to single digit, we cannot begin to celebrate”.

Also commenting over the rising foreign inflow, David Adonri, analyst and Vice Executive Chairman, Highcap Securities Limited, said: “In 2023, the Foreign Portfolio Investment, FPI outflow surpassed the inflow, an indication of eroded investors’ confidence. However, in the two years up to 2025, FPI inflow surpassed outflow clearly indicating increase in foreign investors’ confidence.

“Above situation is vividly reflected in the meteoric growth of the capital market with All Share Index, ASI rising from about 50,000 in 2023 to over 155,000 now. More capital has been formed through new issues in the past two years than in the previous ten years.

“The massive inflow and retention of sizeable quantity of FPI in the past two years has stabilized the foreign exchange market and increased the wealth of investors with multiplier effect on the economy”.