Nigeria Stocks Join Global Decline Amid Tariff Turmoil, Investors Lose N659bn

Nigeria’s stock market suffered significant losses, mirroring a global downturn triggered by U.S. President Donald Trump’s tariffs. On April 7, 2025, the Nigerian Exchange’s All Share Index (ASI) fell by 1.23%, marking its largest single-day drop of the month. This slump wiped out about N659 billion in market value, as investor sentiment soured amidst global economic uncertainty. The broader market collapse was driven by Trump’s unyielding stance on tariffs, contributing to fears of a prolonged economic slowdown.

The fallout from Trump’s tariff policies was felt across major global stock indices. The S&P 500, for example, experienced a 2.3% drop, extending its three-day loss to nearly 20%, while the Dow Jones dropped by over 1,000 points. European and Asian stock markets were also affected, with the FTSE 100 falling 5% and Germany’s DAX plummeting 10%. The Hang Seng in Hong Kong recorded its fourth-biggest one-day decline ever, reflecting the global scale of the market crisis.

In Nigeria, stock transactions totaled 444 million shares worth N11.15 billion, with several key stocks underperforming. Oando and Honeywell Flour Mills were among the biggest decliners, with Oando dropping 10% and Honeywell losing nearly 10% of its value. Analysts had predicted a cautious start to the week for Nigerian stocks, as the uncertainty surrounding global trade tensions and upcoming economic events left investors wary.

Looking ahead, analysts expect a modest recovery in the Nigerian market, driven by expectations for positive earnings reports in the 2024 fiscal year. However, concerns over high interest rates in the fixed-income market and a cautious approach toward the upcoming Monetary Policy Committee decision in May may continue to dampen market performance. Retail investors are also engaging in profit-taking, further limiting the chances for consistent stock price growth.

Source: business day