Foreign portfolio outflows from the Nigerian stock market rose by 9.12% to ₦72.32 billion in February 2026, highlighting sustained capital flight pressures despite a notable increase in foreign inflows.
According to the latest data from the Nigerian Exchange Limited (NGX), foreign outflows increased from ₦66.27 billion recorded in January 2026 to ₦72.32 billion in February.
Foreign Inflows Show Recovery
In contrast, foreign inflows into the Nigerian equities market rose by approximately 15.4% to ₦58.41 billion during the same period, signaling renewed investor interest in Nigerian assets.
However, the higher pace of capital exit outweighed inflows, resulting in a net negative foreign investment position for the month.
Market Dynamics and Investor Sentiment
Market analysts attribute the rise in foreign outflows to a mix of:
- Profit-taking by foreign investors following recent equity market gains
- Continued concerns over exchange rate volatility and macroeconomic uncertainty
This trend suggests that while Nigeria is attracting foreign capital, investors remain cautious and are quick to repatriate funds.
Domestic Investors Still Dominate NGX Activity
Despite the uptick in foreign participation, domestic investors continue to dominate trading activity on the NGX. Foreign transactions accounted for roughly 18% of total market turnover in February, reflecting a market still largely driven by local institutional and retail investors.
Market Resilience Amid Outflows
Notably, the Nigerian stock market showed resilience despite increased outflows. The NGX All-Share Index remained relatively stable, supported by strong corporate earnings, particularly in the banking and industrial sectors.
Outlook for Nigeria’s Equity Market
The divergence between rising inflows and increasing outflows highlights a fragile recovery in foreign investor confidence. While improved inflows indicate renewed interest, persistent outflows underscore lingering risks tied to currency stability and economic policy direction.
Going forward, sustained macroeconomic stability, exchange rate clarity, and investor-friendly reforms will be critical to retaining foreign capital and strengthening participation on the NGX.
