NGX Transactions Hit N5.59 Trillion In 2024

NGX Records N60bn Trading

Trading activity on the Nigerian Exchange (NGX) reached a total of N5.59 trillion in 2024, showing significant growth and increased participation in the market.

According to the NGX report summarizing trading activities as of December 31, 2024, domestic investors dominated the market. They accounted for 85% of the total transactions, amounting to N4.73 trillion. On the other hand, foreign investors made up 15% of the total activity, contributing N852.03 billion.

What Is Domestic and Foreign Portfolio Participation? This refers to the breakdown of trading activity on the stock exchange based on whether the investors are local (domestic) or international (foreign). It shows how much each group contributes to the buying and selling of shares.

In December 2024 alone, trading activities surged, with total transactions hitting N673.66 billion. This marked a 52.29% increase compared to N442.34 billion recorded in November 2024 and an impressive 95.88% jump from N343.92 billion in December 2023.

Domestic investors continued to lead the market in December, contributing N606.91 billion, which represented 90.09% of the total transactions for the month. Foreign investors, by comparison, contributed N66.75 billion, or 9.91%.

Institutional vs. Retail Investors Among domestic investors, institutional investors (such as pension funds and mutual funds) were more active than retail investors (individuals buying and selling shares). Institutional transactions in December amounted to N406.04 billion, a massive 97.09% increase from November’s N206.02 billion. Retail investors saw a smaller increase of 2.81%, with transactions rising from N195.38 billion in November to N200.87 billion in December.

A Year of Growth Looking at 2024 as a whole, institutional investors were the dominant players in the domestic market. Over the past 18 years, domestic transactions have grown significantly, rising by 33.15% from N3.56 trillion in 2007 to N4.73 trillion in 2024. Foreign transactions also increased, growing by 38.31% from N616 billion to N852 billion during the same period, though they still represent a smaller portion of the market.

As of October 2024, domestic transactions had already reached N3.73 trillion, making up 83.35% of total market activity for the year. Overall, equity trading in Nigeria has shown strong growth over the last three years, with total transactions reaching N10.82 trillion by December 31, 2024, driven largely by the active participation of local investors.