Investors Lose ₦858 Billion as Market Selloff Hits NGX Amid Trump’s Threat to Nigeria

The Nigerian stock market witnessed a steep decline this week as investors lost an estimated ₦858 billion in two trading sessions, triggered by a combination of political tension and macroeconomic instability. The selloff followed U.S. President Donald Trump’s controversial threat to deploy American troops to Nigeria over alleged religious killings, further shaking investor confidence already weakened by fiscal and political uncertainty.

According to data from the Nigerian Exchange Limited (NGX), total market capitalization plunged from ₦97.83 trillion last Friday to ₦96.97 trillion by the close of trading on Monday. The All-Share Index fell by 1,496.85 points, or 0.98%, settling at 152,629.61 points. Monday’s session was particularly bearish, with ₦612 billion wiped off in a single day as 42 stocks declined, while only 17 managed to gain.

The downturn was broad-based, with blue-chip companies bearing the brunt of investor selloffs. Nestlé Nigeria led the losers’ chart with a ₦185 decline to close at ₦1,730, while NASCON dropped ₦11 to ₦98. Sky Aviation Handling Company, Oando, and GTCO also suffered heavy losses. Other major decliners included NEM Insurance, PZ Cussons, Nigerian Breweries, Zenith Bank, and UBA. The banking and insurance sectors were hardest hit, falling by 2.05% and 3.76% respectively, as investor fears spread across all major market segments.

Market analysts attributed the selloff to multiple factors, including heightened political risk and fiscal policy concerns. Dr. Paul Uzum, Executive Director of Halo Capital Management, said the market had been under pressure even before Trump’s statement, pointing to investor anxiety over last month’s alleged failed coup attempt and the proposed 30% capital gains tax on equities slated for January 2026. “Trump’s remarks only amplified existing fears and accelerated the flight to safety,” Uzum explained.

Despite a slight increase in trading volume—up 8.25% to 683.9 million shares—the overall market sentiment remains bleak. Analysts warn that unless there’s clarity on fiscal policy and political stability, the bearish trend could persist. Many investors are reportedly shifting to fixed-income assets as they look for safer investment options. As Uzum noted, “When uncertainty around government policy and political risk rises, investors naturally seek stability—and that’s exactly what we’re seeing in the market right now.”

source: The Guardian