A new report has revealed that foreign investors withdrew a staggering N45.8 billion from the Nigerian Exchange (NGX) in January 2025, signaling growing concerns about market stability and economic policies.
The data, released by the NGX, indicates that foreign portfolio investors (FPIs) opted to exit the market due to fluctuating exchange rates, inflationary pressures, and uncertainty surrounding Nigeria’s monetary policies. The withdrawals mark one of the largest capital outflows from the stock exchange in recent months, raising alarms over investor confidence in the Nigerian economy.
Analysts suggest that the exodus of foreign funds could be linked to policy shifts by the Central Bank of Nigeria (CBN), particularly recent foreign exchange reforms that have led to a sharp depreciation of the naira. Additionally, rising interest rates in developed economies, especially in the United States, have made Nigeria’s equities market less attractive to foreign investors seeking stability.
Despite the capital flight, some market experts remain optimistic, arguing that the outflow is part of cyclical trends and that improved macroeconomic conditions could reverse the trend. The Nigerian government has repeatedly assured investors of ongoing efforts to create a more stable business environment, including policies aimed at boosting investor confidence and strengthening the local capital market.