Foreign Investors Withdraw from Nigeria's Stock Market

Foreign investors are retreating from Nigeria's stock market, with their participation collapsing to just 5.6% of total transactions in July 2026, despite the NGX All-Share Index achieving returns of up to 60% year-to-date. Data from the Nigerian Exchange Limited indicates that domestic investors, particularly institutions, accounted for 94.4% of the N2.37 trillion traded in July.

Analysts attribute this trend to pre-election uncertainties, attractive fixed-income yields, operational concerns regarding the new T+1 settlement cycle, and ongoing political and security risks. Mr. Abiodun Ogunniyi, Head of Research at GTI Securities, noted that foreign investors typically withdraw during pre-election periods, with expectations of a bullish window re-emerging around November-December as political clarity improves.

Mr. Charles Fakrogha, MD/CEO of ECL Asset Management Ltd, expressed concern over the low foreign participation but emphasized the confidence of local institutions investing trillions of naira, suggesting that domestic investors have a better understanding of the market dynamics.