Nigeria’s equity market has experienced impressive growth, with total equity transactions reaching N10.82 trillion by the end of 2024, a significant leap driven by robust local investor participation.
Domestic investors were at the forefront of this growth, accounting for 84.02% of the total market transactions, which amounted to N4.91 trillion in 2024. Foreign investors contributed a smaller share, making up 15.98% of the market with N785.28 billion. This marks a continued trend of domestic dominance in Nigeria’s equity trading sector, a shift observed over the past few years.
The peak of trading activity occurred in January 2024, with total transactions hitting N651.52 billion. Of this, domestic investors were responsible for N598.41 billion, or 91.85%, showcasing their strong presence. By November 2024, domestic investors continued to lead, contributing N401.40 billion, with retail investors representing N195.38 billion and institutional investors accounting for N206.02 billion.
Looking back at previous years, 2023 saw a total of N3.58 trillion in equity trading, with domestic investors contributing a dominant N3.17 trillion (88.52%) and foreign investors adding N410.62 billion (11.48%). The peak in 2023 was reached in July, with a total of N702.98 billion in transactions, of which N662.44 billion came from domestic investors, making up 94.23% of the total.
In 2022, the equity market saw N2.32 trillion in total transactions, with domestic investors contributing N1.95 trillion, or 83.68%. The highest monthly trading activity that year occurred in May, with N607.45 billion, of which N562.15 billion came from domestic investors, accounting for 92.54% of the total market share.
The lowest recorded monthly transaction occurred in September 2022, at N81.90 billion, with foreign investors contributing N19.67 billion (24.02%) and domestic investors accounting for N62.23 billion (75.98%).
As of October 2024, domestic transactions on the Nigerian Exchange had already reached N3.73 trillion, representing 83.35% of the market’s total activity, continuing the trend of domestic investor dominance.
This surge in local investor participation signals confidence in the Nigerian equity market and is a positive sign for the nation’s economic prospects.