NGX: Domestic Investors Account for N8.4trn Stock Trades in H1 2026

Kayode Tokede

Amid growing investor confidence and strong corporate earnings by listed companies, domestic investors— comprising retail and institutional investors —traded stocks worth an estimated N8.4 trillion on the Nigerian Exchange Limited (NGX) in the first half of 2026.

The figure represents a 176.2 per cent increase from the N3.06 trillion recorded by domestic investors during the corresponding period in 2025.

According to the NGX’s Domestic & Foreign Portfolio Investment Report, domestic institutional investors accounted for N5.06 trillion in transactions during H1 2026, representing a 218.9 per cent increase from N1.59 trillion in H1 2025. Retail investors traded N3.39 trillion, up 130.4 per cent from N1.47 trillion recorded in the same period last year.

The report showed that domestic investors have continued to dominate trading activities on the Nigerian stock market, a trend attributed to reforms introduced by key capital market regulators.

Analysts attributed the sharp growth in institutional investors’ transactions to the National Pension Commission’s (PenCom) decision in February 2026 to raise equity investment limits for pension funds.

The policy has injected fresh liquidity into the stock market, contributing to the significant appreciation in the share prices of several blue-chip companies. On February 9, 2026, PenCom revised the investment limits for ordinary shares under RSA Funds I, II, III and VI (Active).

The commission amended Section 9 of its investment regulations, increasing the maximum equity allocation for RSA Fund I from 30 per cent to 35 per cent; RSA Fund II from 25 per cent to 33 per cent; RSA Fund III from 10 per cent to 15 per cent; and RSA Fund VI (Active) from 25 per cent to 33 per cent.

Investors on the Nigerian stock market recorded strong returns in the first half of 2026, with market capitalisation rising by N47.84 trillion, despite market volatility in the final month of the period.

The gains marked one of the strongest first-half performances by the NGX in recent years, driven largely by price appreciation in banking, consumer goods, industrial and oil and gas stocks.

Market analysts attributed the rally to improved corporate earnings expectations, attractive fixed-income yields, which supported overall investor confidence, and positioning ahead of the second-half earnings season.

Overall, total transactions by both domestic and foreign investors stood at N9.61 trillion in H1 2026, representing a 129.1 per cent increase from N4.19 trillion recorded in H1 2025.

The NGX report also showed that foreign investors traded N1.16 trillion worth of equities during the period, a marginal 2.2 per cent increase from N1.14 trillion in H1 2025.

With total market transactions of N9.61 trillion in H1 2026, domestic investors accounted for 87.93 per cent of trading activity, up from 72.92 per cent in H1 2025. The share of foreign investors declined from 27.08 per cent to 12.07 per cent over the same period.

The report further noted that over a 19-year period, domestic transactions increased by 160.8 per cent, from N3.56 trillion in 2007 to N9.27 trillion in 2025, while foreign transactions rose by 329.9 per cent, from N615.6 billion to N2.65 trillion during the same period.

According to the report, domestic transactions accounted for about 78 per cent of total market transactions in 2025, while foreign transactions represented 22 per cent.

The report stated: “As at June 30, 2026, year-to-date domestic transactions amounted to approximately N8.448 trillion, representing 87.93 per cent of total market transactions whilst foreign transactions amounted to approximately.”