Nigerian Stock Market Hits 5-Year Low Amid Portfolio Realignment and CGT Uncertainty
The Nigerian stock market experienced its sharpest monthly loss in five years in November, as uncertainty over the Capital Gains Tax (CGT) and year-end portfolio rebalancing weighed heavily on equities. The Nigerian Exchange All Share Index fell by 6.88 percent month-on-month, closing at 143,520.53 points, while market capitalization dropped by N6.54 trillion to N91.29 trillion, marking a significant setback for investors.
Market analysts, however, suggest that the bearish period could present opportunities for new entrants. Samuel Oyekanmi, research and insights lead at Norrenberger, noted that “it is often a good time to position at a lower entry cost.” With clarity on the CGT expected and a normalization of market activity, investors could see gains as early as year-end or in Q1 2026, particularly from dividend payments.
Trading activity mirrored the market’s slump, with total volume falling 64.88 percent to 1.83 billion units and total value traded down 55.64 percent to N20.03 billion. Access Bank led the charts with 103.3 million units traded, accounting for N2.17 billion in value, highlighting that some blue-chip stocks remain active despite overall market caution.
November also saw one of the steepest single-day declines in 15 years, as panic-driven sell-offs wiped N4.64 trillion off the market in a single session. Analysts attributed the drop primarily to investor concerns over the CGT, which is set to increase gains tax from 10 percent to 30 percent next year. Authorities are, however, reviewing the policy, with plans to reduce it to 25 percent to support market participation.
While liquidity remains strong, experts emphasize the need for fiscal policy to align with investor expectations to maintain confidence. As the market finished Monday at 143,210.33 points, representing a four-week loss of 6.85 percent, analysts are urging investors to view the downturn as a potential entry point, signaling that the worst may be behind the market and a rebound could be on the horizon.
source: Business day