Nigeria’s equities market suffered one of its steepest weekly declines in recent years, with investors losing nearly N5 trillion in market value amid growing concerns over insecurity and its potential impact on the economy. The Nigerian Exchange Limited (NGX) shed N4.915 trillion in market capitalisation within five trading sessions, raising fresh fears about investor sentiment and the sustainability of recent market gains.
Market data showed that total market capitalisation dropped from N160.508 trillion on May 29 to N155.593 trillion on June 5, while the All-Share Index (ASI) declined by 7,992 points, representing a 3.2 per cent loss. Although some analysts attributed the downturn to profit-taking activities after a prolonged market rally, many investors believe worsening security challenges are increasingly weighing on investment decisions.
Stakeholders warned that persistent insecurity could discourage both domestic and foreign investments, particularly as political activities ahead of future elections begin to gather momentum. They argued that uncertainty surrounding safety and stability could erode investor confidence, slow economic growth and place additional pressure on financial markets. To reverse the trend, they called on the Federal Government to strengthen intelligence gathering, improve community policing and deploy technology-driven security solutions such as surveillance systems and drones.
President of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, described insecurity as a major source of concern for investors, noting that heightened tensions often trigger cautious market behaviour. While acknowledging the seriousness of the situation, he maintained that the economy is not on the brink of collapse, expressing optimism that improved government action could restore confidence. He urged authorities at all levels to prioritise the protection of lives and property as a foundation for economic stability.
Similarly, President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, stressed that no investor would willingly commit funds to an unsafe environment. He recalled that the market lost more than N4 trillion in just three consecutive trading days and warned that continued deterioration in security could reverse the gains achieved through recent economic and market reforms. Former President of the Ibadan Zone Shareholders Association of Nigeria, Eric Akinduro, echoed the concerns, stating that insecurity remains one of the biggest threats to Nigeria’s economic growth and foreign investment prospects, as investors naturally seek stable and predictable business environments.
source: The Guardian