Overseas investments surge 78% on the Nigerian Exchange as capital flight accelerates

The Nigerian Exchange Limited, or NGX, witnessed a substantial change in foreign investment activity during the first quarter of 2026, with foreign inflows skyrocketing by 78 per cent to N393.68 billion, a significant increase from the N221.62 billion recorded in the same period of 2025.

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This surge in foreign investment signals a renewed interest in the market among investors, albeit with a caveat, as the rise in inflows was accompanied by a notable increase in capital exit, with foreign outflows rising by 31.2 per cent to N420.37 billion Year-to-Date, compared to N320.37 billion in the preceding year.

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According to the NGX Domestic and Foreign Portfolio Participation in Equity Report, total transactions on the Exchange grew by 13.10 per cent to N1.744 trillion, approximately $1.26 billion, in March, up from N1.5424 trillion, about $1.13 billion, in February.

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Domestic investors continued to dominate market activity, with the value of their transactions exceeding those of foreign investors by about 66 per cent in March 2026, underscoring their crucial role in the market.

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A Month-on-Month analysis reveals divergent trends between domestic and foreign investors, with domestic transactions increasing modestly by 3.72 per cent, from N1.4033 trillion in February to N1.4556 trillion in March.

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In contrast, foreign transactions recorded a sharp increase of 107.74 per cent, rising from N139.03 billion, approximately $101.97 million, to N288.82 billion, about $208.28 million.

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Within the domestic segment, institutional investors maintained their dominance over retail investors, with institutional activity exceeding retail transactions by 26 per cent in March 2026.

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Retail transactions dipped slightly by 1.30 per cent to N541.37 billion from N548.50 billion in February, while institutional transactions grew by 6.95 per cent to N914.23 billion from N854.83 billion.