The Nigerian Exchange Limited (NGX) has seen a significant increase in trading activity, with total transactions hitting an impressive N5.59 trillion in 2024. This marks a remarkable rise in market participation, driven largely by domestic investors.
According to the NGX’s equity trading summary, domestic transactions accounted for a dominant 85% of the total volume, totaling N4.73 trillion. In contrast, foreign portfolio investors contributed the remaining 15%, amounting to N852.03 billion. This shift highlights the growing role of local investors in the Nigerian stock market.
A surge in trading was particularly evident in December 2024, where total transactions reached N673.66 billion—up 52.29% from the previous month’s N442.34 billion and a striking 95.88% increase compared to December 2023. Domestic investors once again led the charge, contributing N606.91 billion, or 90.09% of the total monthly transactions. Foreign investors, however, accounted for N66.75 billion, representing 9.91%.
When breaking down domestic activity, institutional investors stood out with substantial growth. Their transactions in December 2024 hit N406.04 billion, reflecting a massive 97.09% increase from N206.02 billion in November. In comparison, retail investors experienced a more modest rise of 2.81%, moving from N195.38 billion in November to N200.87 billion in December.
Throughout 2024, domestic institutional investors continued to lead, holding the larger share of transactions across both retail and institutional categories. Over the past 18 years, domestic transactions have grown by 33.15%, from N3.56 trillion in 2007 to N4.73 trillion in 2024. Although foreign transactions have increased by 38.31%, from N616 billion to N852 billion, they still account for a much smaller portion of the market activity.
As of October 2024, domestic transactions reached N3.73 trillion, accounting for 83.35% of the total market activity, as reported by The PUNCH. Overall, equity trading in Nigeria saw notable growth, with total transactions for the year reaching N10.82 trillion by December 31, 2024, largely driven by the active participation of local investors.
This growth trend reflects a solidifying confidence in Nigeria’s stock market, with domestic investors continuing to play a pivotal role in its development and success.