Foreign Investors Pull N266bn From Nigeria’s Equities Market in Three Years

Foreign investors have withdrawn a net N266.07 billion from Nigeria’s equities market in the first seven months of 2026, showing a sharp rise in foreign portfolio selling pressure.

Data from the Nigerian Exchange Limited (NGX) showed that the net outflow increased by more than 1,073 per cent, from N22.68 billion recorded between January and July 2023 to N266.07 billion in the same period of 2026.

The figures showed that foreign investors brought N513.36 billion into the market between January and July 2026 but withdrew N779.43 billion, leaving a net deficit of N266.07 billion.

This was significantly higher than the N61.83 billion net outflow recorded in the corresponding period of 2025 and the N64.72 billion recorded in 2024.

Despite the foreign sell-off, trading activity on the Nigerian Exchange remained strong.

Total transactions reached about N11.98 trillion in the first seven months of 2026, almost twice the N6.01 trillion recorded during the same period in 2025. Much of the activity was driven by domestic investors.

Analysts attributed the foreign outflows to factors including profit-taking, portfolio rebalancing, concerns about returns and continued caution over Nigeria’s investment environment.

However, market analysts stressed that foreign investors have not completely abandoned Nigeria.

Some are reportedly shifting their funds towards fixed-income instruments, including Federal Government bonds and Treasury Bills, because of attractive yields.

Experts also warned that continued foreign outflows could affect market liquidity and reduce the depth of the Nigerian capital market.

They called for stronger policy consistency, predictable regulation, improved corporate governance, deeper market liquidity and measures that would encourage foreign investors not only to enter Nigeria but also to retain their investments.