Lagos, Nigeria – August 7, 2025
In a sign of shifting investor confidence, foreign investors have divested a staggering ₦576 billion from the Nigerian equities market in just the first six months of 2025, according to recent figures from the Nigerian Exchange Limited (NGX).
This development raises concerns about investor sentiment and the broader outlook for Nigeria’s financial markets, especially as the country navigates persistent economic challenges such as currency instability, inflation, and capital controls.
Market analysts attribute the sell-off to several key factors. Chief among them is the continued volatility of the naira, which has weakened against the dollar despite reforms. Additionally, delays in repatriation of profits and the rising cost of doing business are making Nigeria a less attractive destination for global capital.
Foreign investors accounted for nearly 60% of total equity outflows between January and June, reflecting a trend that could have deeper implications for the market’s long-term growth and liquidity. In contrast, domestic investors have remained relatively active, helping to cushion the impact of the exit.
“This kind of capital flight reflects uncertainty and a lack of confidence in policy consistency,” said Uche Okorie, an investment analyst in Lagos. “It’s not just about performance—it’s about trust.”
The Central Bank of Nigeria has recently announced a raft of measures to stabilize the naira and boost investor confidence, but market players say the results will take time to materialize.
In an interconnected global economy, Nigeria must compete for capital by creating an environment of transparency, consistency, and ease of doing business. Experts warn that without urgent reforms, more divestments could follow.
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