Foreign Investors’ NGX Transactions Drop 25.9% To ₦183.61bn In May

Foreign investors’ transactions on the Nigerian Exchange (NGX) fell by 25.90 per cent month-on-month to N183.61 billion in May 2026.

This was contained in the latest Domestic & Foreign Portfolio Investment Report released by NGX Regulation Limited, covering equities transactions as at May 31, 2026.

The decline pushed foreign participation to 9.45 per cent of total market activity, the lowest level this year, even as overall transactions hit a 2026 peak of N1.94 trillion.

The data reveals total transactions rose 7.79 per cent to N1.94 trillion, a 2026 peak, while the foreign investor footprint shrank to its smallest monthly share since the year began.

Foreign outflows of N96.01 billion exceeded inflows of N87.60 billion, resulting in a net foreign outflow of N8.41 billion for the month.

The May 2026 report reveals a market increasingly driven by domestic capital, with foreign participation declining even as total activity grows. In terms of year-on-year comparison, the total May 2026 transactions stood at N 1.94 trillion, about 177.42 per cent higher than May 2025’s N700.50 billion

A deeper look at the May data revealed that the foreign investor retreat is only one dimension of a more complex outlook of market activities during the month under review.

The sharp drop in foreign participation to nine per cent in May coincided with the recent implementation of Nigeria’s T+1 settlement transition, which commenced on June 1, 2026.

FTSE Russell has cited T + 1 as a trigger for pausing Nigeria’s planned return to Frontier Market status, a development likely to extend foreign investor caution in the near term.

May 2026’s total transactions of N1.94 trillion represent the highest monthly activity level recorded on the NGX in 2026, driven entirely by domestic investors, both retail and institutional even as the foreign share hit a 2026 low of 9.45 per cent.

The 2026 year-to-date total of N7.9 trillion is more than double the N3.41 trillion recorded in the same period of 2025, reflecting the transformative growth in domestic investor participation that has characterised the current market cycle.

Cumulative net foreign outflows of N173.26 billion in 2026 year-to-date (YTD), reflecting N573.32 billion in outflows against N400.06 billion in inflows confirm that international investors have been consistent net sellers of Nigerian equities across all five months of the year.

The institutional net selling of N93.01 billion in May suggests that large domestic portfolio managers, pension funds, asset managers, and insurance companies began rebalancing portfolios toward fixed income instruments as treasury bill (T-bill) yields climbed above 17 per cent and OMO rates approached 22 per cent during the month.

Capital market analysts stated that retail investors’ net buying position of N40.41 billion in May reflects the resilience of individual investor participation even in a season of market correction, supported by the expanding base of digital trading platforms and growing financial literacy among younger Nigerian investors.