Foreign investment inflows to Nigeria's equities market dropped by 29.66% in February 2025, falling to ₦18.05 billion from ₦25.66 billion in January.

The reduction in foreign participation was significant, with total foreign portfolio transactions on the Nigerian Exchange Limited (NGX) declining by 40.36% from ₦71.51 billion to ₦42.65 billion. Foreign outflows also decreased substantially, down 46.33% to ₦24.60 billion from January's ₦45.85 billion.

Overall trading activity on the exchange fell by 16.07% month-on-month, with total transactions dropping from ₦607.05 billion (approximately $410.84 million) in January to ₦509.47 billion (about $341.36 million) in February. However, compared to February 2024, trading volumes were up 42.36% year-on-year.

Domestic investors continued to dominate the market, accounting for 91.63% (₦466.82 billion) of all equity transactions in February, while foreign investors contributed just 8.37% (₦42.65 billion). This represents an increase in domestic market share from 88.22% in January.

Among domestic participants, institutional investors remained more active than retail traders, though both segments saw declines. Institutional transactions decreased by 5.92% to ₦252.31 billion, while retail investor activity fell more sharply by 19.76% to ₦214.51 billion.

Despite monthly fluctuations, cumulative domestic transactions for 2025 reached ₦1.002 trillion by the end of February, surpassing the ₦890.48 billion recorded during the same period in 2024. Meanwhile, foreign portfolio activity totaled ₦114.16 billion, slightly below the ₦118.92 billion seen in early 2024.

The declining foreign participation may reflect ongoing concerns about macroeconomic uncertainties and volatility in Nigeria's foreign exchange market.​​​​​​​​​​​​​​​​