Foreign investors snub Nigeria's equities, local players reap 66% rally
By Aboki Forex —
Foreign investors largely stayed away from Nigerian stocks this year, missing a 66% rally that made the market the world's best performer. They chose fixed-income assets instead, leaving domestic investors to drive the market.
Data from the Nigerian Exchange Group shows non-residents accounted for just 12% of all transactions in the first half of the year, down from 27% in the same period of 2025. Local investor participation rose to 88% from 73%.
Local investors lead the charge
Domestic investors have been the biggest winners, piling into local stocks after a 63% rally last year. The naira's stability, which has held broadly steady this year, helped boost confidence in equities.
Foreign investors, by contrast, focused on fixed-income instruments, missing the strong stock market performance.
What this means for the market
The growing dominance of local investors marks a shift in Nigeria's capital market. It also shows how much the equity market now depends on domestic confidence and a stable exchange rate, rather than foreign inflows.