In August 2026, foreign investors accounted for a mere 4.89% of equity transactions on the Nigerian Exchange (NGX), the lowest level recorded this year. This decline is notable as total equity transactions fell by 46.38% to N1.27 trillion, down from N2.37 trillion in July. Foreign trading decreased sharply to N62.03 billion, a 53.23% drop from the previous month, while domestic investors continued to dominate the market, executing transactions worth approximately N1.21 trillion.
This significant drop in foreign participation is concerning as it reflects broader trends in investor sentiment and market confidence. The cumulative foreign net selling reached N275.16 billion from January to August, a staggering increase compared to N43.36 billion during the same period in 2025. This trend suggests that foreign investors are increasingly wary of the Nigerian market, potentially due to economic uncertainties and political risks, particularly as the country navigates its post-election landscape.
Looking ahead, market observers will need to monitor the evolving dynamics between foreign and domestic investors. With domestic investors now accounting for nearly 90% of turnover, the NGX's future may hinge on local market conditions and investor sentiment. If foreign participation continues to dwindle, it could lead to increased volatility and a potential reevaluation of investment strategies in the region. Stakeholders should also keep an eye on global economic trends that may influence foreign investment flows into African markets.