Foreign investor participation on the Nigerian Exchange Limited recorded a strong rebound in March 2026, rising sharply by 107.74% month-on-month to N288.82 billion, even as domestic investors continued to dominate overall market activity.
This is according to the latest data of Domestic & Foreign Portfolio Investment Report published by NGX for March, 2026.
The uptick reflects renewed foreign interest alongside sustained domestic momentum, signaling a gradual shift toward a more balanced participation structure.
However, total transactions on the NGX climbed to N1.744 trillion in March 2026, representing a 10% increase from the N1.542 trillion recorded in February.
According to the data, foreign participation recorded its strongest rebound in months, even though it remains a smaller share of total market activity.
Despite the sharp growth in foreign flows, domestic investors continue to anchor liquidity in the market.
A closer look at flow dynamics shows improving foreign inflows, though outflows remain elevated.
Institutional and retail domestic investors maintained strong participation, with retail activity showing notable depth, further reinforcing local market resilience.
On a cumulative basis, the Nigerian equities market has maintained strong growth momentum in 2026.
While foreign participation has grown at a faster rate historically, it has remained structurally lower than domestic activity, reflecting Nigeria’s evolving market dynamics.
According to Charles Fakrogha, Chief Executive of ECL Asset Management Limited, the rebound in foreign participation signals improving investor sentiment.
Analysts at Cordros Capital also noted that Nigeria’s return to Frontier Market status could significantly boost capital inflows.
The analysts believe that Nigeria’s return to Frontier Market status is expected to improve market flow dynamics, with inflows projected in the range of $840.00 million to $1.04 billion (about N1.13 trillion to N1.42 trillion).
The recent reclassification of Nigeria’s market status by FTSE Russell from “Unclassified” to “Frontier Market” is expected to take effect in September 2026, potentially unlocking significant passive and active inflows.
While pointing out areas of further improvement, the FTSE Russell board acknowledged improvements in:
The sharp rise in foreign participation in March signals a gradual return of offshore investors, but the market remains firmly driven by domestic liquidity.
With structural improvements underway and global index reclassification ahead, Nigeria’s equities market appears poised for stronger foreign inflows, even as domestic investors continue to provide the backbone of market activity.
