Despite the Nigerian Exchange (NGX) delivering the world’s highest equity returns with a 66 percent year-to-date surge, foreign investor participation has dropped to 12 percent of total trading, down from 27 percent last year. International investors are prioritizing high-yield government securities, which offer nearly 20 percent returns, over equities. This shift is driven by concerns regarding the new T+1 settlement cycle, which requires naira pre-funding, and Nigeria’s failed market classification upgrade by FTSE Russell. Consequently, domestic investors now account for 88 percent of market activity, sustaining the rally through demand for banking and telecommunications stocks. Analysts warn that long-term market depth requires improved settlement infrastructure and regulatory certainty to attract foreign portfolio flows back.