Foreign Portfolio Inflows Plummet by 92.39% in April Amid Global Uncertainty

Foreign portfolio investment in Nigeria’s stock market dropped sharply by 92.39% in April 2025, with inflows declining to N26.64 billion, compared to N349.97 billion in March.

The downturn was largely due to the absence of block trades that had previously boosted market activity.

Total foreign transactions also fell by 90.99%, from N699.89 billion in March to N63.07 billion in April. This decline reflects growing caution among international investors amid global uncertainty and geopolitical risks.

Domestic investors continued to dominate the market, accounting for 86.92% of total trade in April, with institutional investors increasing their participation while retail investors showed a more cautious stance.

Year-to-date, foreign inflows stood at N420.32 billion, while outflows reached N456.80 billion, resulting in a net capital outflow of N36.48 billion. Despite a surge in foreign trade in March, the overall trend suggests continued caution among foreign investors.

The broader market also saw a 56.79% decline in total transaction value, dropping from N1.115 trillion in March to N482.04 billion in April. However, compared to April 2024, the market grew by 39.22% year-on-year.

Global factors, including U.S. President Donald Trump’s announcement of new tariffs, contributed to market volatility. The Central Bank of Nigeria (CBN) responded by injecting $200 million into the forex market to stabilize the naira.