Domestic investors have taken a firm grip on Nigeria's stock market, accounting for 89.77% of total transactions on the Nigerian Exchange Limited (NGX) in the first eight months of 2026. According to data from the NGX, domestic investors transacted N11.89 trillion between January and August, significantly surpassing the N5.46 trillion recorded in the same period of 2025. This surge in domestic transactions has been a key driver of the market's growth, with total transactions rising 91.5% to N13.25 trillion from N6.92 trillion in the previous year.
The growing dominance of local investors is a notable trend in Nigeria's stock market. Institutional investors accounted for N7.36 trillion of domestic transactions between January and August, while retail investors accounted for N4.53 trillion. In contrast, foreign investors accounted for only N1.35 trillion, or 10.23%, of total transactions. This shift towards domestic investors has been driven by a decline in foreign participation, which fell to 10.23% from 21.01% in the same period of 2025.
The increase in domestic transactions has been significant, with the N11.89 trillion recorded in the first eight months of 2026 already 28% higher than the N9.27 trillion recorded for the whole of 2025. This growth has been driven by a surge in institutional investor activity, with their transactions rising from N3.13 trillion in the same period of 2025 to N7.36 trillion. Retail transactions also increased, from N2.33 trillion to N4.53 trillion.
Despite the growth in domestic transactions, trading activity slowed sharply in August. Total transactions fell 46.38% to N1.27 trillion from N2.37 trillion in July. Domestic transactions declined 45.98% to N1.21 trillion, while foreign transactions dropped 53.23% to N62.03 billion. However, August transactions were 39.75% higher than the N908.4 billion recorded in the same month last year.
The slowdown in August was more pronounced among institutional investors, whose transactions fell 60.39% to N654.61 billion from N1.65 trillion in July. Retail transactions declined by a much smaller 5.08% to N552.88 billion. Despite this moderation, domestic investors continued to dominate the market, accounting for 95.11% of transactions in August.
The growing importance of domestic investors as a source of liquidity in the market is a notable trend. Domestic transactions have risen significantly over the years, from N3.56 trillion in 2007 to N9.27 trillion in 2025, before climbing to N11.89 trillion in the first eight months of 2026. This growth has been driven by an increase in institutional investor activity, as well as a rise in retail transactions.
The data suggests that the surge in activity on Nigeria's equities market this year has been driven largely by local capital. The market's growth has been powered by domestic investors, particularly institutional investors, who have become an increasingly important source of liquidity. As the market continues to evolve, it will be interesting to see if this trend persists.
Key points
- Domestic investors accounted for 89.77% of total transactions on the NGX in the first eight months of 2026.
- Institutional investors accounted for N7.36 trillion of domestic transactions between January and August.
- Total transactions on the NGX rose 91.5% to N13.25 trillion in the first eight months of 2026.
