By Boluwtife Oshadiya | October 12, 2026,
Key Points
- Foreign investors accounted for 4.89% of Nigerian Exchange equity transactions in August, trading ₦62.03 billion
- Total market turnover fell 46.38% month-on-month to ₦1.27 trillion, driven mainly by a sharp decline in domestic institutional activity
- Foreign investors recorded cumulative net sales of ₦275.16 billion between January and August, while domestic trading rose 117.64% year-on-year
Main Story
Foreign investors accounted for just 4.89% of equity transactions on the Nigerian Exchange (NGX) in August 2026, as foreign trading fell to ₦62.03 billion and total market turnover declined 46.38% month-on-month to ₦1.27 trillion, according to the exchange’s latest Domestic and Foreign Portfolio Investment Report.
The report showed that foreign transactions fell 53.23% from ₦132.62 billion in July, while domestic investors traded approximately ₦1.21 trillion. Despite the monthly slowdown, August turnover remained 39.75% above the ₦908.4 billion recorded in August 2025.
Foreign investors recorded purchases of ₦26.47 billion against sales of ₦35.56 billion, resulting in net sales of ₦9.09 billion. Although this was significantly lower than July’s ₦49.44 billion net sell position, the reduction reflected weaker overall trading activity rather than stronger foreign buying.
Cumulative foreign net sales reached ₦275.16 billion between January and August, approximately 6.35 times the ₦43.36 billion recorded during the corresponding period of 2025. Foreign purchases declined 23.41% year-on-year to ₦539.83 billion, while sales increased 8.92% to ₦814.99 billion.
Foreign participation also weakened over the eight-month period. The NGX report showed that foreign investors accounted for 16.56% of transactions in March, before their share declined to 13.74% in April, 9.45% in May, 10.90% in June, 5.60% in July and 4.89% in August.
Domestic investors, meanwhile, accounted for 89.77% of total equity turnover between January and August, compared with 78.99% in the corresponding period of 2025. Their transaction value increased 117.64% to ₦11.89 trillion from ₦5.46 trillion.
The August decline was driven primarily by domestic institutional investors, whose transactions fell 60.39% to ₦654.61 billion from ₦1.65 trillion. Retail transactions declined by a smaller 5.08% to ₦552.88 billion.
Total NGX equity transactions reached ₦13.25 trillion between January and August, up 91.51% from ₦6.92 trillion a year earlier, according to the exchange.
What’s Being Said
The NGX’s August portfolio investment report shows a widening gap between domestic and foreign participation, with local investors accounting for nearly nine-tenths of market turnover during the first eight months of 2026.
Earlier market commentary cited in the supplied report attributed some of the weakness in foreign trading to settlement uncertainty, pre-election risk aversion and global portfolio rebalancing. However, the available material does not establish the relative contribution of each factor to August’s decline.
What’s Next
The next NGX Domestic and Foreign Portfolio Investment Report will provide evidence of whether foreign participation recovered or weakened further in September.
Investors will also be watching subsequent monthly transaction data to determine whether domestic institutional activity rebounds after its sharp August decline and whether foreign investors reduce their sustained net selling.
Bottom Line
The Bottom Line: Nigeria’s equity market is expanding in transaction value, but its growth is increasingly dependent on domestic capital. The decline in foreign participation raises questions about the depth and diversity of demand, while sustained local activity remains an important source of market liquidity.
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