Domestic Investors Fuel NGX 57% Surge as Foreign Participation Drops to 12.1%

BY NKECHI BAECHE-ESEZOBOR—Managing Director of Coronation Asset Management, Aigbovbioise Aig-Imoukhuede, said Nigeria’s equities market recorded a 57 per cent return in the first seven months of 2026, but the rally was driven predominantly by domestic capital rather than a resurgence in foreign portfolio investment,

Speaking at the Capital Market Review and Outlook for Second Half of the year today in Lagos, he said the performance of the Nigerian Exchange (NGX) reflected stronger domestic participation, improving macroeconomic conditions and rising investor confidence, rather than significant foreign capital inflows.

As of the end of July, the NGX All-Share Index had gained 57 per cent, while total market capitalisation increased by N58.9tn to N158.2tn.

He said the performance placed Nigeria among the world’s strongest-performing equity markets in dollar terms, according to Bloomberg data.

However, Aig-Imoukhuede cautioned that the scale of the rally should prompt investors to assess whether the performance represented a sustainable structural recovery or a temporary market re-rating.

“These numbers are certainly worth celebrating,” he said, noting that the rally reflected a strengthening domestic capital base, improving macroeconomic stability and growing opportunities for long-term investors.

The Coronation Asset Management executive said the changing composition of market participation was one of the most significant features of the 2026 rally.

According to him, domestic investors have become the dominant force behind the market’s performance, even as foreign participation has declined.

By June 2026, foreign investors accounted for 12.1 per cent of total NGX transaction value, down from 27 per cent a year earlier.

Aig-Imoukhuede, however, said the decline in foreign participation should not be interpreted as a…