The Business NG - April 02, 2025

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Today's Focus: Foreign Investors Exit NGX, Market Transactions Drop 16%

The Nigerian Exchange (NGX) witnessed a sharp downturn in February 2025, as total transactions plunged by over 16%. This decline is primarily driven by the exodus of Foreign Portfolio Investors (FPIs), who are shifting capital to the U.S. dollar amid persistent macroeconomic uncertainties.

According to the latest Domestic and Foreign Portfolio Transactions Report, market transactions dropped from N607.05 billion ($410.84 million) in January to N509.47 billion ($341.36 million) in February. The steep decline signals growing investor concerns over foreign exchange volatility and geopolitical risks.

Notably, foreign investor participation fell drastically by 40.36%, shrinking from N71.51 billion ($48.38 million) in January to N42.65 billion ($28.57 million) in February. Analysts suggest that unless economic stability improves, this capital flight trend could further weaken market liquidity and investor confidence in Nigeria’s equities market.