The Nigerian stock market has suffered a dramatic loss, shedding a staggering N2.8 trillion in value within just one week as investors engaged in widespread selling. The Nigerian Exchange Group’s (NGX) All-Share Index (ASI) recorded its fifth consecutive day of decline, closing on November 7th in negative territory at 149,524.8 points, marking a weekly loss of 2.11 per cent.
The market capitalisation, which represents the total value of all listed equities, mirrored this bearish sentiment, slipping from N95.3 trillion to N94.9 trillion in a single day, reflecting the speed and magnitude of the investor exit.
This sharp downturn is directly linked to two significant economic and geopolitical concerns that have rattled both domestic and foreign investors.
Firstly, a major source of the panic selling is the Federal Government’s proposed Capital Gains Tax (CGT), which is scheduled to take effect in January 2026. This new tax will impose a 25 per cent levy on profits exceeding a N150 million threshold earned from the sale of assets, including stocks.
According to investors who spoke to market analysts, the anticipated tax burden is driving immediate sell-offs as large players scramble to realise profits before the new law diminishes their net returns. This is particularly concerning for the economy as it threatens to reduce the liquidity and attractiveness of Nigeria’s capital market.
Secondly, the market instability is being compounded by geopolitical tensions. Reports citing US President Donald Trump’s threat of military action against Nigeria are being mentioned as a key factor driving foreign investor exits. Global capital is notoriously sensitive to political and security risk, and any perceived threat to Nigeria’s stability leads international investors to quickly withdraw funds, causing further depreciation in asset values.
An interview with one investor confirmed the sentiment: “The looming CGT is forcing our hand. No one wants to wait around and see a quarter of their capital gains wiped out next year,” adding that the market volatility caused by foreign exits due to political concerns is only accelerating the urgency to sell.
On a daily basis, trading volume also slowed down, indicating that fewer new buyers are entering the market to absorb the selling pressure. While a few companies like NCR and MCNICHOLS managed to register gains, the overall market trend was dominated by decliners, signaling a broad-based lack of confidence in the short-term outlook. This sustained sell-off points to a challenging period ahead for the Nigerian stock market and the broader economy as it attempts to maintain investor trust.
