Foreign investors shunned Nigerian stocks this year, choosing to focus on fixed-income assets, missing out on a 66% rally that made the market the world’s best performer.

The Nigerian equities market surged 66% in 2024, outperforming all global peers, yet foreign portfolio inflows remained muted as investors favored fixed-income instruments amid currency volatility and repatriation concerns.

Local institutional investors and retail participants drove the rally, with the Nigerian Exchange All-Share Index hitting multi-year highs. The divergence highlights structural barriers that continue to deter international capital despite attractive valuations.

Analysts note that while foreign investors missed the equity upside, their fixed-income positioning reflects ongoing macroeconomic uncertainties, including naira depreciation risks and policy unpredictability.