Foreign investor participation on NGX crashes to 9% as total market activity hits N1.94 trillion in May 2026
By Aboki Forex —
Foreign investors’ transactions on the Nigerian Exchange (NGX) slumped 25.90% month-on-month to N183.61 billion in May 2026, marking the worst decline in foreign participation so far this year. Their share of total market activity fell to just 9%, the lowest level recorded in 2026, even as overall transactions hit a year-to-date peak of N1.94 trillion.
The figures are contained in the latest Domestic & Foreign Portfolio Investment Report released by NGX Regulation Limited, covering equities transactions as at May 31, 2026.
Foreign outflows exceed inflows
Foreign outflows of N96.01 billion exceeded inflows of N87.60 billion in May, resulting in a net foreign outflow of N8.41 billion for the month. On a year-to-date basis, cumulative net foreign outflows stand at N173.26 billion, reflecting N573.32 billion in outflows against N400.06 billion in inflows.
Year-to-date foreign transactions of N973.38 billion are marginally below the N996.03 billion recorded in the same period of 2025, despite total market transactions being 131% higher. This means foreign investors are participating at a fraction of last year’s relative intensity even as the overall market has more than doubled in transaction value.
Domestic investors drive record activity
Total transactions on the NGX rose 7.79% to N1.94325 trillion in May, the highest monthly level in 2026. Domestic transactions accounted for N1.75964 trillion, representing 90.55% of total activity. Within the domestic segment, institutional investors generated N1.033 trillion in gross activity, representing 59% of domestic participation, while retail investors contributed N726.27 billion.
However, institutional investors turned net sellers in May. Institutional outflows of N563.19 billion exceeded inflows of N470.18 billion, resulting in a net institutional outflow of N93.01 billion. Retail investors emerged as net buyers, recording inflows of N383.34 billion against outflows of N342.93 billion, for a net inflow of N40.41 billion.
Total domestic net flow was negative at N52.60 billion, confirming net selling pressure within the domestic segment. Combined with the N8.41 billion net foreign outflow, the market recorded a total net outflow of N61.01 billion for the month.
Foreign participation in steady decline since March
Foreign transactions peaked at 16.56% of total activity in March 2026, declined to 13.74% in April, and fell to 9.45% in May. Foreign participation has now dropped below the January 2026 level of 13.24%, suggesting that the factors driving the retreat are intensifying.
On a year-to-date basis, foreign participation in 2026 stands at 12.33% of total transactions, a dramatic reduction from the 29.17% recorded in the same period of 2025.
The sharp drop in foreign participation to 9% in May coincided with the recent implementation of Nigeria’s T+1 settlement transition, which commenced on June 1, 2026. FTSE Russell has cited T+1 as a trigger for pausing Nigeria’s planned return to Frontier Market status, a development likely to extend foreign investor caution in the near term.
May 2026’s total transactions of N1.94 trillion represent the highest monthly activity level recorded on the NGX in 2026, driven entirely by domestic investors even as the foreign share hit a 2026 low of 9.45%. The 2026 year-to-date total of N7.9 trillion is more than double the N3.41 trillion recorded in the same period of 2025.
For the naira and Nigerian businesses, the continued retreat of foreign portfolio investors signals reduced external demand for local equities and reinforces the dominance of domestic capital in the market. With cumulative net foreign outflows of N173.26 billion in 2026 YTD, the pressure on foreign exchange liquidity from portfolio flows is likely to persist in the near term.