The Nigerian equities market kicked off this year with an extraordinary surge in activity, with recent data confirming that total stock deals indeed crossed the N2.4 trillion mark within the first two months of the year.
The two months to February deals value more than doubles the N1.11 trillion recorded in same period of 2025, a level of liquidity that underscores a massive shift in investor sentiment.
According to the Domestic and Foreign Portfolio Investment Report of Nigerian
Exchange Limited (NGX), out of the N2.4 trillion deals value recorded in two months to February, N253.17 billion or 10.53 percent was by foreign investors while N2.15 trillion or 89.47 percent was by domestic investors.
The stock market rose to approximately N123.76 trillion by the end of February, up from roughly N99.38 trillion at the start of the year. All-Share Index (ASI) closed February at 192,826.78 basis points, representing a year-to-date growth of circa 24 percent .
The market sees remarkable surge in deals value with the National Pension Commission (PenCom) recently revised investment limits, which allow pension funds to increase their exposure to the equities market. This injected significant fresh liquidity into the exchange.
Also, the Central Bank of Nigeria’s (CBN) ongoing banking sector recapitalisation exercise which ends on March 31 has led to strategic portfolio adjustments and increased investor interest in financial services.
Likewise, strong full-year 2025 financial results from major listed companies have driven up demand for dividend-paying stocks.
Read also: Here are ten listed companies with the highest unclaimed dividends in 2025
“The volume of transactions we are seeing points to a market that is becoming deeper and more capable of supporting increased activity. Beyond the headline numbers, the more important development is the quality of participation and the strengthening of market structure,” said Temi Popoola, Group Managing Director and Chief Executive Officer, Nigerian Exchange Group (NGX Group).
He told BusinessDay that while domestic investors continue to anchor market activity, the gradual uptick in foreign participation reinforces the attractiveness of Nigeria’s capital market.
On a monthly basis, Nigerian Exchange Limited polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
The report also shows foreign inflow was N114.57 billion while foreign outflow was N138.60 billion. Domestic retail investors deals worth N908.36 billion while their institutional counterparts accounted for deals worth N1.24trillion.
“Our focus at NGX Group is to sustain this momentum by enhancing market depth, expanding product offerings, and positioning the Exchange as a credible gateway for both local and international capital,” Popoola added.
As at February 28, total transactions at the
nation’s bourse increased significantly by 78.93 percent from N862billion (about $621.67 million) in January to N1.5424 trillion (about $1,131.27 million) in February 2026.
The performance of February when compared to the performance in February 2025 (N1.1165 trillion) revealed that total
transactions increased by 38.15 percent.
In February 2026, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 82 percent.
Also, institutional investors outperformed Retail Investors by 22 percent. A comparison of domestic transactions in the current and prior month (January 2026) revealed that retail transactions increased by 52.42 percent from N359.86 billion in January 2026 to N548.50 billion in February 2026.
However, the institutional composition of the domestic market increased significantly by 120.33 percent from N387.97 billion in January 2026 to N854.83 billion in February 2026.
“The Nigerian equity market may sustain its bullish momentum, having broken and held above the historic 200,000-point threshold,” said United Capital research analysts.
“This milestone has reinforced investor confidence and attracted renewed institutional interest. The market is undergoing a broader re-rating, with global investors reassessing the country’s economic progress and strong outlook.
“This comes after strong returns, ongoing reforms, and the improving macroeconomic direction. Banking and industrial goods stocks are likely to remain the primary drivers of activity.
“However, profit-taking in high-performing stocks may introduce mild volatility as investors rebalance ahead of the quarter-end. Overall, the structural bull run remains intact.
“This run is supported by strong corporate fundamentals and growing local and foreign participation. However, investors should remain alert to global risk-off spillovers,” United Capital research analysts further said in their recent note to investors.
In their March 23 Model Equity Portfolio, CardinalStone Research analysts said investor sentiment is likely to remain positive, driven by the growing anticipation around the release of audited full year (FY) 2025 earnings and dividend announcements from the banking tickers.
“As such, we expect increased activity in the banking sector, particularly on the tickers with a strong dividend-payout history. However, we do not rule out profit-
taking on recently rallied counters,” the analysts added.
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