Domestic Investors Drive Nigeria’s Equity Market to N10.82tn Milestone
Nigeria’s equity market has witnessed impressive growth over the past three years, with total transactions reaching a remarkable N10.82tn by the close of 2024. This surge has been primarily driven by domestic investors, whose increasing dominance has reshaped the trading landscape.
In 2024, domestic investors accounted for a staggering 84.02 per cent of market transactions, contributing N4.91tn to the total, while foreign investors lagged with just 15.98 per cent, or N785.28bn. The year’s highest monthly transaction was recorded in January, reaching N651.52bn, of which domestic investors claimed 91.85 per cent, or N598.41bn.
As the year progressed, retail investors took the lead, particularly in November, when they contributed N195.38bn out of the domestic total of N401.40bn. Institutional investors followed closely, adding N206.02bn to the mix.
The trend of local investor dominance extends beyond 2024. In 2023, total equity trading reached N3.58tn, with domestic investors contributing a commanding 88.52 per cent, or N3.17tn. Foreign investors’ share dipped further, making up just 11.48 per cent with N410.62bn. July 2023 saw the year’s peak, with transactions hitting N702.98bn, 94.23 per cent of which came from domestic investors. By contrast, foreign participation reached its nadir in April 2023, when it accounted for a mere 4.43 per cent of market activity.
The year 2022 set the stage for this upward trajectory, with total equity trading standing at N2.32tn. Domestic investors maintained their stronghold, contributing 83.68 per cent (N1.95tn), while foreign investors accounted for 16.32 per cent (N379.23bn). The peak monthly activity in May 2022 saw domestic investors dominate with 92.54 per cent of transactions, amounting to N562.15bn out of N607.45bn.
Despite this growth, the disparity between domestic and foreign participation has widened. The lowest monthly total in September 2022 saw foreign investors contribute 24.02 per cent (N19.67bn), while domestic investors still controlled the majority at 75.98 per cent (N62.23bn).
Year-to-date figures as of October 2024 indicate that domestic transactions on the Nigerian Exchange reached N3.73tn, making up 83.35 per cent of total market activity.
As Nigeria’s equity market continues to expand, the surge in local participation underscores the growing confidence of domestic investors in the nation’s financial ecosystem, while foreign investment remains subdued. This shift highlights both the resilience of local market players and the potential for greater foreign engagement in the years ahead.
