Foreign inflows into Nigerian equities surged 78 percent in March, reversing a six-month downward trend, as institutional transactions on the NGX rose 6.95 percent to N914.23 billion. This increase contrasted with a 1.30 percent decline in retail investor activity, which dipped to N541.37 billion from N548.50 billion the previous month. The rebound in foreign participation coincided with renewed confidence in Nigerian assets, following months of sustained capital outflows from local markets. Data from the NGX showed that institutional investors, both foreign and domestic, drove the month-on-month growth in turnover.
The shift marked a notable turnaround from February, when outflows dominated market activity. While retail participation softened slightly, the overall market momentum was sustained by stronger institutional engagement. The 78 percent jump in foreign inflows highlighted a pivot in investor sentiment, even as macroeconomic pressures, including inflation and exchange rate volatility, persisted. Market analysts observed that the return of foreign capital could signal growing appetite for Nigerian equities, though the sustainability of the trend remained uncertain.
The NGX reported a 78% surge in foreign inflows while retail investor participation declined, exposing a disconnect between international sentiment and local market engagement. Institutional transactions rose to N914.23 billion, yet average Nigerian investors pulled back, transacting only N541.37 billion. This gap suggests that while foreign capital returns, domestic confidence in the equity market remains fragile.
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