Nigerian Stocks Plunge N6.5 Trillion in November Amid CGT Fears – NGX Records Historic Monthly Loss

The Nigerian equities market suffered its worst monthly decline in history in November 2025, losing a staggering N6.54 trillion in market capitalization. According to Nairalytics data, this marks the steepest drop since January 2013, when the Nigerian Exchange (NGX) first crossed the N10 trillion market cap threshold. While the market remains ahead year-to-date, this historic downturn has sent shockwaves through investor circles.

Analysts attribute November’s rout to intensified profit-taking ahead of the anticipated 30% Capital Gains Tax (CGT), set to take effect on January 1, 2026. Investor anxiety over the tax prompted widespread sell-offs, particularly in large-cap and mid-tier stocks. Market confidence was further shaken by ambiguous government statements and uncertainty around CGT enforcement, leading to sharp declines across all sectors.

The NGX closed November with a total market capitalization of N91.29 trillion, down from N97.83 trillion in October—a 6.69% month-on-month contraction. The All-Share Index (ASI) mirrored this drop, falling 6.88% to 143,520.53 points. November’s single-day losses were also unprecedented, with November 11 alone wiping N4.6 trillion off the market, reflecting the acute sensitivity of the Nigerian stock market to fiscal policy changes.

The decline was broad-based, with all major indices posting negative returns. The Industrial Goods Index led the slump, falling 13.8%, followed by Insurance (-12.07%) and Premium Index (-10.44%). Banking and Oil & Gas stocks also fell by 5.77% and 7.33% respectively, while Consumer Goods showed relative resilience, losing 3.2%. Even blue-chip stocks were not spared, highlighting the pervasive nature of investor panic.

Despite November’s losses, the Nigerian market remains positive for the year, with cumulative gains of N28.57 trillion, representing a 45.45% increase since January. However, market analysts warn that the looming CGT and recent volatility may dampen momentum into December, urging investors to exercise caution. The month serves as a stark reminder of how fiscal policy uncertainty can quickly erode investor confidence.

source: nairametrics