Nigerian Stock Market Sheds N1.8 Trillion in Four Days Amid Capital Gains Tax Jitters and Trump’s Threat
The Nigerian Exchange (NGX) suffered another bruising week as panic-driven sell-offs erased about N1.8 trillion in market value within just four trading sessions. The NGX All-Share Index plunged from 154,123.62 points last Friday to 150,026.55 points by Thursday, slashing year-to-date gains from 49.74% to 45.76%. The steep losses mark one of the worst four-day streaks of 2025, rattling investors and traders across the equities market.
Market participants largely blame the slump on the federal government’s proposed 25% Capital Gains Tax (CGT), which would apply to profits above N150 million starting January 2026. Institutional and high-net-worth investors are reportedly liquidating positions ahead of the new policy to avoid a “potential 25% haircut” on future gains. Fund managers also cite liquidity reallocation into fixed-income assets, where yields remain attractive amid rising fiscal uncertainty.
Adding to the chaos, U.S. President Donald Trump’s threat of military action against Nigeria over alleged human-rights violations has intensified foreign investor jitters. The warning has triggered risk-off sentiment among offshore funds, deepening the sell pressure on the bourse. Analysts say the combination of fiscal anxiety and geopolitical fear has created a perfect storm for short-term volatility.
The sell-off was most pronounced in the banking and consumer goods sectors, where heavyweights like ACCESSCORP, GTCO, ZENITHBANK, DANGSUGAR, and GUINNESS all recorded steep losses. Despite mild resistance from UBA, FCMB, and WAPCO, overall sentiment remained bearish. Market turnover, however, stayed robust—over 2.4 billion shares worth N77 billion changed hands—suggesting investors are rotating portfolios rather than abandoning equities entirely.
With investors still digesting the implications of the proposed tax, analysts expect the bearish trend to linger unless the government provides clarity or reconsideration of the CGT framework. If the decline continues, November could become the market’s worst month in 2025, undoing much of the optimism from October’s 8% rally. Market watchers say all eyes are now on fiscal policymakers as traders hope for relief from the ongoing sell-off.
source: nairametrics