On a monthly basis, Nigerian Exchange Limited (“NGX”) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 28 February 2023, total transactions at the nation’s bourse decreased by 3.17% from N195.10billion (about $422.94million) in January5 2023 to N188.91billion (about $409.72million) in February6 2023. The performance of the current month when compared to the performance in February 2022 (N183.56billion) revealed that total transactions increased by 2.91%. In February 2023, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 80% as shown in figure 1 below.

Analysis of Domestic and Foreign Transactions For The Month (February ’23)

A further analysis of the total transactions executed between the current and prior month (January 2023) revealed that total domestic transactions decreased by 0.53% from N170.20billion in January to N169.29billion in February 2023. However, total foreign transactions decreased more significantly by 21.20% from N24.90billion (about $53.98million) to N19.62billion (about $42.51million) between January 2023 and February 2023

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 58%. A comparison of domestic transactions in the current and prior month (January 2023) revealed that retail transactions decreased by 2.44% from N35.66billion in January to N34.79billion in February 2023. Similarly, the institutional composition of the domestic market decreased by 0.03% from N134.54billion in January 2023 to N134.50billion in February 2023.

Historical Analysis of Domestic and Foreign Transactions

The data in figure 7 below highlights the performance of the market over the last decade. Over a sixteen (16) year period, domestic transactions decreased by 45.30% from N3.556t in 2007 to N1.945t in 2022 whilst foreign transactions also decreased by 38.47% from N616bn to N379bn over the same period. 

Total domestic transactions accounted for about 84% of the total transactions carried out in 2022, whilst foreign transactions accounted for about 16% of the total transactions in the same period. 

The transaction data for 2023 shows that total domestic transactions are circa N339.49billion, whilst total foreign transactions are circa N44.52billion