Foreign Portfolio Investment (FPI) in the Nigerian equities market recorded a net outflow of N266.07 billion between January and July 2026, representing a sharp increase from N22.68 billion recorded during the same period in 2023.
Data from the Nigerian Exchange Limited showed that foreign investors consistently took more money out of the market than they brought in during the period.
Between January and July 2026, foreign investors brought N513.36 billion into the market but withdrew N779.43 billion, resulting in the N266.07 billion net outflow.
Analysts attributed the trend to factors including profit-taking, portfolio rebalancing and continued caution over Nigeria’s economic and investment environment.
Despite the foreign outflows, trading activity on the Nigerian Exchange remained strong, with total transactions reaching about N11.98 trillion in the first seven months of 2026. The increase was driven largely by domestic investors.
President of the Chartered Institute of Stockbrokers, Fiona Ahimie, said the outflow was a concern because foreign investors were yet to show sufficient confidence in holding Nigerian equities over the long term.
She called for greater policy consistency, deeper market liquidity, stronger corporate governance and predictable regulations to make Nigeria more attractive to international investors.
Investment analyst Tajudeen Olayinka, however, said foreign investors had not completely left Nigeria’s capital market, noting that some had shifted their holdings towards fixed-income securities because of attractive yields.
Post comments (0)