LAGOS, Nigeria — Foreign portfolio investors withdrew a net N266.07 billion from Nigerian equities between January and July 2026, a sharp increase from the N22.68 billion net outflow recorded during the same period in 2023, according to Nigerian Exchange Limited data. The widening gap means foreign investors sold significantly more Nigerian shares than they bought, even as overall trading activity on the market nearly doubled.
Foreign investors brought N513.36 billion into the equities market during the seven-month period but withdrew N779.43 billion, leaving the N266.07 billion deficit. In the corresponding period of 2025, foreign inflows stood at N609.73 billion and outflows at N671.56 billion, producing a much smaller net outflow of N61.83 billion. The 2026 figure is more than four times last year’s level and nearly 12 times the N22.68 billion recorded in the first seven months of 2023.
The figures do not mean foreign investors have withdrawn only N266 billion over the entire three-year period. Rather, the net outflow for January through July has risen from N22.68 billion in 2023 to N266.07 billion in 2026. Foreign portfolio investment, or FPI, refers to overseas investors buying tradable financial assets such as shares and bonds. Unlike foreign direct investment, which usually involves longer-term investments in factories or businesses, portfolio funds can move rapidly between markets in search of better returns.
The retreat came despite strong growth in Nigeria’s stock market. Total transactions on the NGX reached about N11.98 trillion in the first seven months of 2026, nearly double the N6.01 trillion recorded in the same period last year. Domestic investors accounted for N10.68 trillion, or about 89% of total transactions, while foreign investors represented just 10.79%. In July alone, foreign participation fell to 5.6%, its lowest monthly share of 2026.
Market analysts have pointed to several explanations, including profit-taking after strong stock gains, political uncertainty ahead of the 2027 elections and the attraction of high-yield government bonds and Treasury bills. Tajudeen Olayinka, a capital-market analyst, said foreign investors had not completely abandoned Nigeria but were increasingly concentrating holdings in fixed-income securities, where high interest rates can provide more predictable returns than equities.
David Adonri, managing director of Highcap Securities Ltd., said stronger foreign participation remains important because international capital can provide additional liquidity and foreign exchange to Nigeria’s economy. “In the world of investment, the more the merrier,” Adonri said, adding that some of the withdrawals could also reflect investors taking profits after the market’s prolonged rally. Nigeria has meanwhile introduced reforms aimed at improving market access and transparency, and S&P Dow Jones Indices placed the country on its 2027 watchlist for possible reclassification as a frontier market.
For Africa’s most populous country, the foreign investment trend matters beyond the stock exchange. Sustained overseas participation can strengthen foreign-exchange liquidity, broaden the pool of capital available to Nigerian companies and improve the country’s visibility among global investors. Analysts say greater policy predictability, lower inflation, deeper market liquidity and regulatory clarity will be important if Nigeria is to persuade more international investors not only to enter the market but to keep their money invested for longer periods
