The Nigerian Exchange Limited (NGX) has witnessed a significant decline of 45.30 percent in domestic transactions over 16 years, from N3.556tn in 2007 to N1.945tn in 2022, according to a report issued by the NGX.
Similarly, foreign transactions on the NGX dropped by 38.47 percent from N616bn to N379bn over the same period.
In 2022, domestic transactions accounted for approximately 84 percent of the total transactions, while foreign transactions represented about 16%.
The highest recorded foreign transactions were in 2014 with N1.538tn, followed by N1.219tn in 2018. However, foreign transactions steadily declined since 2018, reaching N379bn by the end of 2022.
In April 2023, total domestic transactions amounted to N659.26bn, while foreign transactions totaled N62.18bn. The data showed a gradual decrease in foreign transactions from January to April 2023, with N8.47bn recorded in April.
The total value of transactions at the NGX increased by 30.77 percent from N146.22bn in March 2023 to N191.21bn in April 2023. Domestic investors outperformed foreign investors by 92 percent in April 2023.
The CEO of NGX, Temi Popoola, expressed concerns about capital inflow into the market and called for enabling government policies to promote listings.
Popoola emphasized the importance of collaboration with the new administration and key stakeholders to develop policies that would enhance market growth, boost retail participation, and increase investor confidence.
