Foreign investor participation in the Nigerian stock market dropped to a 2026 low of 5.6% in July, as the market experiences a correction following a strong year-to-date rally. Despite the benchmark All-Share Index maintaining a 53.81% gain for the year, it has recorded a ten-session losing streak, shedding approximately N5.6 trillion in market capitalization since August 11. Analysts attribute the foreign retreat to pre-election uncertainties, high fixed-income yields, and concerns over the new T+1 settlement cycle. Domestic institutional investors remain the market’s primary drivers, accounting for the vast majority of trading activity. Market experts view the current pullback as a natural phase of price discovery and consolidation, allowing investors to shift focus toward company fundamentals rather than broad market momentum.