Domestic investors in Nigeria’s equities market reached a record high in 2024, executing transactions worth N4.73 trillion—far surpassing foreign investors’ participation, which stood at N852 billion.
According to the Nigerian Exchange Limited (NGX) December 2024 report, total market transactions increased by 52.3% from N442 billion in November to N673 billion in December, with domestic investors accounting for 85% of the year’s total activity. This marked a stark contrast to the 15% contribution from foreign investors.
December’s figures highlighted the continued dominance of local investors, with their transactions nearly 80% higher than those of foreign investors. Year-on-year, the market saw a remarkable 95.9% increase, jumping from N343.9 billion in December 2023 to N673 billion in December 2024.
Institutional investors led the charge, outperforming retail investors by 34% in December. Institutional transactions surged by 97.09% to N406 billion from N206 billion in November, while retail transactions rose by 2.81% to N200.9 billion.
Over an 18-year period, domestic transactions have grown by 33.15%, from N3.6 trillion in 2007 to N4.74 trillion in 2024, while foreign transactions increased by 38.3% from N616 billion to N852 billion.
Market analysts view the growing dominance of local investors as a positive shift away from reliance on foreign portfolio investments, which have historically contributed to volatility.
“Markets dominated by local institutional investors provide a solid base and reduce volatility,” said Olatunde Amolegbe, Managing Director of Arthur Stephen Asset Management Limited.
Similarly, Moses Igbrude, President of the Independent Shareholders Association of Nigeria, attributed the rise in domestic participation to greater investor awareness. He noted that foreign investors remain cautious due to concerns over exchange rate fluctuations, fund repatriation challenges, and global economic uncertainties.
The increasing confidence and participation of local investors signal a promising future for Nigeria’s equities market, laying a foundation for sustainable growth and reduced dependence on foreign capital.
