Written by Peter Egwuatu
The majority of activity on the Nigerian Exchange Limited (NGX) in December 2025 was significantly increased by domestic investors, with total domestic and foreign portfolio transactions rising to N1.38 trillion, a 42.13 percent increase from N0.97 trillion in November 2025.
The surge was primarily caused by increased domestic participation, according to the NGX Domestic and Foreign Portfolio Investment, or FPI, trading figures released yesterday. Local investors executed transactions worth N0.92 trillion, or 67% of all market activity during the month. However, N458.09 billion, or 33%, came from foreign investors, highlighting the ongoing dominance of domestic funds in equity trading.
Overall market activity also improved year over year (YoY), with total transactions increasing by 104.91% from N673.67 billion in December 2024. This indicates better liquidity conditions and increased investor confidence in the stock market.
Domestic transactions rose by 13.99 percent from N0.809 trillion in November to N0.922 trillion in December 2025, according to a breakdown of the December data. Foreign participation, however, saw the biggest increase, with total foreign transactions increasing by 182.70 percent from N162.04 billion in November to N458.09 billion in December.
Block transactions, which greatly increased both inflows and outflows during the month, were primarily responsible for the dramatic increase in foreign activity.
Foreign inflows increased to N223.79 billion while foreign withdrawals were N234.30 billion, according to data, suggesting that offshore investors are actively adjusting their portfolios.
Domestic investors continued to fare significantly better than their overseas counterparts, even with the revival of foreign transactions. Local investors play a crucial role in maintaining market depth and stability, as seen by the roughly 34% value difference between domestic and international transactions.
Institutional investors continued to be the dominant force, exceeding retail investors by 30%, according to additional study of domestic involvement. Retail transactions climbed by 14.67 percent, from N277.93 billion to N318.69 billion during the same period, while institutional transactions jumped by 13.63 percent, from N531.21 billion in November to N603.62 billion in December 2025.
Even if domestic investors continue to provide a solid liquidity backbone amid variable international flows, analysts say the December performance shows increasing market mood, portfolio rebalancing ahead of year-end, and increased confidence in Nigeria’s equity market fundamentals.
