…As funds flow to short term debts

…Market Cap rises by N60trn in 7 months

While Nigeria’s local investors reaped the extraordinary rewards of a world-beating market surge, international capital chose a remarkably different path.

As Nigerian equities staged a staggering 60 percent rally year-to-date (YtD), foreign portfolio investors largely watched from the sidelines, opting instead to park their capital in short-term debt instruments with yields hovering around 20 percent.

Nigeria’s equities trading data showed that foreign participation dropped significantly, falling to about 12 percent of transactions in the first half (H1) of year 2026 compared to 27 percent the previous year.

The retail and institutional Nigerian investors accounted for N8.448trillion or 87.93 percent of total market activity as against N1.160trillion or 12.07 percent by their foreign counterparts.

Rather than contributing in fueling the stock market rally, foreign capital largely bypassed equities to lock into high, risk-free yields on short-term government debt such as Treasury bills (T-Bills) offering around 20 percent.

“We see the current environment as one of evolving investor preferences rather than diminished interest in Nigeria’s equity market. What is particularly encouraging is that the market has demonstrated remarkable resilience, underpinned by a deepening domestic investor base,” said David Adonri, vice president, Highcap Securities Limited.

“As macroeconomic stability strengthens and reforms continue to take effect,…