Foreign Investors Return to Nigeria’s Stock Market as Inflows Surge 108% in March

Foreign investors are returning to Nigeria’s stock market after months of caution, driven by improving currency conditions and a broader rally in equities.

New data from NGX Domestic and Foreign Portfolio Investment report shows that foreign transactions on the Nigerian Exchange jumped by 107.74% in March 2026, reaching about $215 million (N288.82 billion), up from roughly $107 million (N139.65 billion) in February.

The rebound helped lift overall market activity. Total transactions rose 13.1% month-on-month to about $1.30 billion (N1.744 trillion) in March.

A key driver was a sharp increase in foreign inflows, which climbed to about $135 million (N181.77 billion), from $54 million (N72.32 billion) the previous month.

This suggests global investors are starting to see value in Nigerian equities again, particularly after recent price adjustments and signs of better access to foreign exchange.

Nigeria has struggled for years to attract consistent foreign portfolio investment due to currency volatility and difficulties in repatriating funds.

But recent reforms, including efforts to unify exchange rates and improve transparency in the foreign exchange market, appear to be slowly restoring confidence.

Even so, local investors remain the backbone of the market. Domestic participants accounted for more than 83% of total trading in March, with transactions worth about $1.08 billion (N1.455 trillion).

Institutional investors such as pension funds and asset managers led activity, outpacing retail investors by a wide margin.

This reflects a broader trend: Nigerian institutional investors have continued to back large, fundamentally strong companies, even during periods when foreign investors pulled back.

The recovery in foreign participation also comes amid a strong market run.

Total transactions for the first quarter of 2026 reached about $3.08 billion (N4.148 trillion), an 85.9% increase compared to the same period last year.

The rally has pushed the NGX All-Share Index to record highs in recent months, attracting renewed global attention.

Still, the outlook remains closely tied to macroeconomic stability. Inflation, interest rate decisions by the Central Bank of Nigeria, and the durability of foreign exchange reforms will likely determine whether foreign investors continue to increase their exposure.

For now, the March data points to a tentative but important shift: global capital is beginning to flow back into one of Africa’s largest equity markets.