Foreign investors exited ₦576.09 bn from equities over Jan–Jun 2025, an 85% rise year‑on‑year, surpassing inflows of ₦559.25 bn for a net loss of ₦16.84 bn .
Domestic investors, especially institutions, pushed total exchange transactions to ₦4.19 tn, a 61% jump from ₦2.60 tn in H1 2024; domestic share rose to 72.9% (₦3.06 tn) with institutional trades edging ahead of retail .
From near-equal retail and institutional levels in January, institutional dominance broadened by June (₦364.71 bn vs. retail’s ₦274.63 bn), as retail participation peaked mid‑period then declined—amid rising inflation exceeding 22% and pressure on disposable incomes .
March saw the highest volatility: total turnover surged to ₦1.29 tn, largely on the back of foreign inflows hitting ₦349.97 bn, creating a net foreign gain of ₦144.43 bn. But April reversed gains sharply after the US imposed a 14% tariff—trades slumped to ₦487.39 bn, inflows tumbled, outflows surged .
Financial experts say foreign portfolio flows are sensitive to global policy shifts, attractive yields in T‑bills and OMO instruments, and FX policy uncertainty. Johnson Chukwu noted how most foreign investment poured into fixed income instruments ($4.2 bn), with only $117 m into equities in Q1. Olatunde Amolegbe pointed out that FPIs are typically trader‑minded: once profit targets are met, they exit, though re‑entry is possible. Dayo Adenubi highlighted the use of quantitative strategies and benchmarked funds .
The shift toward institutional liquidity dominance raises questions about market depth and sustainability, especially as retail funding retreats under inflationary pressure.