Foreign portfolio investment (FPI) in Nigeria’s equities market suffered a dramatic collapse in April 2025, plunging by 92.39 per cent to just N26.64 billion, compared to N349.97 billion in March, according to newly released data from the Nigerian Exchange (NGX).
The total value of foreign transactions also fell sharply by 90.99 per cent, from N699.89 billion in March to N63.07 billion in April. While foreign inflows stood at N26.64 billion, outflows reached N36.43 billion, leading to a net capital outflow of N9.79 billion for the month.
This sharp reversal follows the unusually high activity recorded in March when foreign trades made up 62.74 per cent of the total market volume. By April, however, foreign participation plunged to just 13.08 per cent, exposing the fragility of international investor confidence in Nigeria’s financial markets.
Economic analyst and CEO of CFG Advisory, Dr. Bismarck Rewane, noted: “The figures reveal a classic case of volatility in portfolio flows, especially in frontier markets. Without predictable policy direction, foreign investors will naturally reduce exposure, especially amid global monetary tightening and geopolitical tension.”
Dr. Ayo Teriba, an economist and CEO of Economic Associates, added: “The decline reflects both external and internal stressors. While U.S. tariffs and global trade disruptions are valid concerns, Nigeria’s ongoing foreign exchange instability and regulatory unpredictability also weigh heavily on investor sentiment.”
April’s market downturn came in the wake of U.S. President Donald Trump’s imposition of sweeping new tariffs, including a 14 per cent levy on Nigerian exports.