Overseas Investors Double Down on Nigerian Equities Amid Market Rebound

Recent market data show that foreign transactions on the Nigerian Exchange have surged to levels not seen in nearly two decades with total deal values reaching approximately ₦2.65 trillion over the past year.

The development marks a notable shift in sentiment after several years of cautious participation by offshore investors.

Market analysts attribute the renewed interest to improved foreign exchange liquidity, enhanced price discovery mechanisms and sustained reforms aimed at restoring investor confidence.

The stabilisation of the naira and clearer monetary policy signals have also contributed to the growing appetite for Nigerian assets.

Foreign investors, who had previously reduced exposure due to currency volatility and repatriation concerns, are now accounting for a larger share of total market turnover. Their participation has strengthened liquidity conditions and supported upward momentum across key sectors, particularly banking, oil and gas, and consumer goods.

Investment strategists say Nigerian equities are increasingly viewed as attractive relative to other emerging markets due to competitive valuations and improving corporate earnings.

Several listed financial institutions have posted resilient performance, while energy companies have benefited from stronger operational metrics and pricing dynamics.

The rebound in market activity has coincided with broader macroeconomic adjustments, including fiscal realignment and policy measures designed to attract external capital.

Analysts note that consistency in reform implementation remains critical to sustaining the inflow trajectory.

The surge in foreign activity has also had implications for domestic investors. Increased liquidity has narrowed bid-ask spreads and enhanced price stability, though it has also intensified competition for fundamentally strong stocks.

Capital market observers maintain that sustained foreign participation could deepen market capitalisation, expand institutional investor presence and improve Nigeria’s standing within frontier and emerging market indices.

However, experts caution that maintaining investor confidence will depend on continued currency stability, transparent regulatory oversight and predictable fiscal policy. Any reversal in these areas, they warn, could temper the current inflow momentum.

With overseas investors returning in force, Nigeria’s equity market appears to be entering a more active phase, reflecting renewed global interest in one of Africa’s largest financial markets.