The Business NG - December 24, 2025

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Editorial Focus: The Missing Foreign Capital
Nigeria’s equities market has shown remarkable resilience in 2025, driven overwhelmingly by domestic investors. With nearly 80% of total transactions coming from local participants, the market has proven it can grow even amid global uncertainty. However, the subdued presence of foreign portfolio investors, contributing barely one-fifth of total activity, raises critical questions about confidence, policy credibility and market depth.
Despite reforms in foreign exchange management and capital market regulation, offshore investors remain cautious. The sharper decline in foreign transactions compared with domestic trades in November underscores persistent concerns around currency stability, repatriation risks and macroeconomic predictability. While domestic dominance is a strength, a market that lacks balanced foreign participation risks limited liquidity, reduced price discovery and vulnerability to local shocks.
To unlock sustainable growth, Nigeria must move beyond reforms on paper to consistent execution. Stable FX policy, transparent market rules and clear investor communication are essential. Restoring foreign confidence is not optional; it is central to deepening the market and positioning Nigeria as a credible investment destination.