Despite global economic uncertainties, Nigeria's stock market demonstrates remarkable strength, with domestic investors stepping up to fuel robust financial activity in 2025.

Foreign equity trades on the Nigerian Exchange Limited remained below N200bn for the second consecutive month in November, dropping 13.17% to N162.04bn. However, this apparent pullback masks a deeper story of local market dynamism, where domestic investors have become the primary engine of trading momentum.

Institutional investors played a pivotal role, increasing their participation by 3.30% and reaching N531.21bn in transactions. This performance outpaced retail investors by 32%, highlighting the growing sophistication of Nigerian financial institutions.

The year-to-date performance tells an even more compelling narrative. Total equity transactions have soared to N10.54tn, more than double the N4.91tn recorded in the same period of 2024. Domestic investors contributed N8.35tn, representing an impressive 79.23% of total transactions.

In dollar terms, foreign equity transactions declined from approximately $131.27m in October to $112.00m in November, reflecting both reduced trading volumes and exchange rate fluctuations. Yet, the overall market activity showed a remarkable 119.56% increase compared to November 2024, signaling a strong recovery trajectory.

This resilience is particularly noteworthy given the persistent macroeconomic challenges. While foreign investors maintained a cautious stance, local market participants demonstrated unwavering confidence in Nigeria's economic potential. The sustained domestic investment suggests a maturing financial ecosystem less dependent on external capital flows.

Looking ahead, the Nigerian stock market appears poised for continued growth. With domestic investors driving liquidity and institutional participants showing increased strategic engagement, the market's foundation seems increasingly robust and self-sustaining.