Foreign portfolio participation on the Nigerian Exchange Limited recorded a significant recovery in March 2026, with total foreign transactions increasing by 107.74 per cent to reach N288.82bn.

According to the latest Domestic and Foreign Portfolio Investment report released by NGX Regulation Limited on Wednesday, total market transactions grew 13.10 per cent to N1.744tn in March, up from the N1.542tn recorded in February.

The latest report noted, “The significant jump in foreign inflows, which rose from N72.32bn in February to N181.77bn in March, suggests that international investors are increasingly finding value in Nigerian equities following recent market re-ratings and improved foreign exchange liquidity.”

Despite the surge in foreign activity, domestic investors continued to dominate the bourse, accounting for 83.44 per cent of total transactions. Total domestic value stood at N1.455tn for the month, with institutional investors outperforming retail participants by 26 per cent

Providing insight into the local market composition, the report added, “The domestic market remains the bedrock of our exchange. With institutional transactions rising to N914.23bn, it is clear that local pension funds and asset managers are maintaining a strong bullish stance on high-quality Nigerian equities, even as foreign interest returns.”

The surge in foreign inflows comes amid a period of aggressive fiscal and monetary reforms aimed at stabilising the naira and attracting foreign direct investment. Historically, foreign participation in the Nigerian capital market has been hampered by currency volatility and challenges in capital repatriation. However, the 107.74 per cent month-on-month increase indicates a potential shift in sentiment as investors respond to improved transparency in the Nigerian Autonomous Foreign Exchange Market.

Year-to-date figures show that total market transactions for the first quarter of 2026 have hit N4.148tn, representing a massive 85.87 per cent increase compared to the N2.232tn recorded during the same period in 2025. This growth reflects the broader market rally that has seen the NGX All-Share Index reach record highs over the last year.

Reflecting on the historical trend and market depth, the report added, “Over a 19-year period, domestic transactions have increased significantly by 160.83 per cent. While foreign participation has fluctuated, the long-term trajectory remains positive, reinforcing the Exchange’s position as a premier destination for both local and international capital.”

As the second quarter begins, market observers expect institutional investors to maintain their leading role, while foreign participation is projected to remain sensitive to macroeconomic indicators, particularly inflation data and subsequent Central Bank of Nigeria interest rate decisions.

The Federation Account Allocation Committee shared a total of N2.04tn as revenue for March 2026, reflecting a N150bn increase from the N1.89tn distributed in February, amid stronger statutory inflows.

The disclosure was contained in a statement issued on Wednesday by the Office of the Accountant-General of the Federation and signed by its Director of Press and Public Relations, Bawa Mokwa.

According to the statement, “a total sum of N2.036tn, being March 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” at the April 2026 FAAC meeting held in Abuja.

The N2.04tn distributable revenue comprised N1.32tn from statutory revenue, N515.39bn from Value Added Tax, and N200bn as augmentation

A breakdown showed that the Federal Government received N789.16bn, representing about 38.8 per cent of the total pool, while states got N657.60bn, about 32.3 per cent, and local government councils received N468.83bn, about 23.0 per cent. Oil-producing states received N120.76bn as derivation, accounting for roughly 5.9 per cent of the total.

The communiqué noted that “total gross revenue of N2.364tn was available in the month of March 2026,” from which N81.08bn was deducted as cost of collection, while N246.87bn was recorded as transfers, refunds, and savings.

The deductions and transfers together accounted for over 13 per cent of gross inflows, highlighting the scale of statutory obligations before distribution.

From the statutory revenue component of N1.32tn, the Federal Government received N632.26bn, states got N320.69bn, and local governments received N247.24bn, while N120.76bn was shared as derivation.

Similarly, from the N515.39bn VAT pool, the Federal Government received N51.54bn, states got N283.47bn, and local governments received N180.39bn, reinforcing the growing importance of consumption taxes in subnational revenues.

From the N200bn augmentation, the Federal Government received N105.36bn, states got N53.44bn, and local governments received N41.20bn, suggesting continued fiscal adjustments to stabilise monthly allocations.

On revenue performance, the communiqué stated that “gross statutory revenue of N1.699tn was received for the month of March 2026,” rising by N137.91bn from the N1.56tn recorded in February. This increase largely drove the higher FAAC distribution, offsetting weaker VAT inflows.

However, VAT collections showed marginal weakness. The statement noted that “gross revenue of N664.425bn was available from the Value Added Tax in March 2026,” lower than the N668.450bn recorded in February by N4.025bn.

The statement added that Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty increased significantly, pointing to improved non-oil tax performance.

In contrast, Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalty, import duty, and CET declined considerably, reflecting ongoing volatility in oil receipts and trade-related revenues, while VAT decreased marginally.

Moniepoint Microfinance Bank has reaffirmed its leadership in Nigeria’s agency banking space, positioning its service model as a catalyst for sector growth while committing to deepening value creation across the financial ecosystem.

Beyond service provision, the bank stated that it is cementing its identity as the technological backbone of the real economy, designed to address the specific complexities of the local commercial landscape.

Speaking on the bank’s evolving strategy, the Senior Vice President, Distribution Network Sales, Moniepoint MFB, Ezekiel Sanni, noted that agency banking must be anchored on consistent enterprise support, trust, and real economic value for agents and merchants.

He said, “Our goal is to transcend traditional transaction processing by becoming a fundamental partner in the daily growth of small businesses.

By providing the tools for inventory management and working capital alongside seamless payments, we are ensuring that financial inclusion leads to actual economic empowerment for the average Nigerian entrepreneur.”

Sanni further explained that the next phase of industry growth would be defined by the quality of service and depth of engagement rather than just reach.

“At Moniepoint MFB, we have built a model that prioritises not just access, but meaningful, routine local support for the merchants and communities we serve,” he said.

At the core of this approach is the deployment of dedicated field-based managers who provide hands-on support tailored to daily operations. Unlike conventional systems where engagement often ends after onboarding, the bank maintains continuous interaction with agents to resolve operational challenges and strengthen long-term partnerships.

By combining digital infrastructure with a physical presence, the bank has created a hybrid service model that enables faster issue resolution and mentorship in critical areas such as fraud detection and Anti-Money Laundering regulatory compliance.

“When you are close to the agent, you are in a position to go beyond providing a service to building capability,” Sanni added.

The bank’s performance metrics reinforce its position as a major merchant acquirer, reportedly powering eight out of every 10 in-person payments made across the country. The bank attributed this to reliability, fast transaction processing, and rapid settlement cycles.

The firm reiterated that agency banking remains critical infrastructure for economic participation, pledging to continue strengthening its indigenous engine to keep the real economy moving.