LAGOS, Nigeria (FN), Foreign portfolio inflows into the Nigerian Exchange surged by seventy-eight percent in the first quarter of 2026, reaching three hundred ninety-three point six eight billion naira, but rising outflows of four hundred twenty point three seven billion naira underscored continued investor caution and capital flight.
Data released by the NGX showed that while foreign investors increased their participation compared to two hundred twenty-one point six two billion naira in inflows recorded in the same period of 2025, withdrawals also climbed sharply from three hundred twenty point three seven billion naira last year. The net position remained negative, with outflows exceeding inflows by twenty-six point six nine billion naira.
Total market transactions in March stood at one trillion seven hundred forty-four billion naira, up thirteen point one percent from February’s one trillion five hundred forty-two billion naira. Domestic investors continued to dominate activity, accounting for about two-thirds of total trades. Institutional investors led the way with nine hundred fourteen point two three billion naira in March, compared to five hundred forty-one point three seven billion naira from retail investors.
Analysts say the figures reflect renewed foreign interest in Nigerian equities but also highlight persistent concerns over foreign exchange volatility, macroeconomic uncertainty and regulatory risks. “We are seeing short-term inflows, but the rising outflows show investors are still hedging against instability,” said one Lagos-based market strategist.
Similar patterns have emerged in past years, with foreign investors entering briefly to exploit foreign exchange windows before exiting. The trend has raised questions about the sustainability of foreign participation in Nigeria’s capital markets.
The NGX report comes as policymakers push for reforms to stabilize the naira and attract long-term investment. Market watchers warn that unless confidence improves, Nigeria may continue to experience high turnover without meaningful retention of foreign capital.
