Nigeria’s stock market on Tuesday recorded one of its largest single-day losses in recent times, shedding N4.6 trillion in market value as investors engaged in profit-taking in highly capitalised listed companies on the Nigerian Exchange Limited (NGX).
Shares of major companies, including Dangote Cement Plc, MTN Nigeria Communications Plc, and BUA Cement Plc, fell by 10 per cent, closing at N594.00, N162.00, and N429.30 per share, respectively.
The NGX’s total market capitalisation dropped to N89.885 trillion, a decline of 4.91 per cent from the opening value of N94.526 trillion. Dangote Cement alone lost N1.11 trillion in value, while MTN Nigeria Communications and BUA Cement saw declines of N1 trillion and N609.6 billion, respectively.
The downturn pushed the NGX All-Share Index down by 7,454.60 points, or 5.01 per cent, to close at 141,327.30 points from the opening level of 148,781.90 points. Month-to-date and year-to-date returns also fell to -8.3 per cent and +37.3 per cent, respectively.
Sectoral indices mirrored the broader market decline. The NGX Industrial Goods Index dropped 8.6 per cent, NGX Banking Index fell 7.3 per cent, NGX Oil & Gas Index slid 4.6 per cent, NGX Insurance Index lost 4.3 per cent, and the NGX Consumer Goods Index declined by 2.2 per cent.
Analysts attributed the sell-off to investor sentiment driven by external and domestic factors, including former U.S. President Donald Trump’s threat of military action against Nigeria and the Federal Government’s plan to implement Capital Gains Tax (CGT).
On his social media platform Truth Social, Trump stated he had instructed the Pentagon to “prepare for possible action” and warned of the immediate suspension of U.S. aid to Nigeria, Africa’s most populous nation and an OPEC member. President Bola Tinubu dismissed the comments, describing them as a misrepresentation of Nigeria’s “consistent and sincere efforts to safeguard freedom of religion and belief for all Nigerians.”
Speaking to THISDAY, investment banker and stockbroker Tajudeen Olayinka said the N4.6 trillion market loss reflected a combination of Trump’s statements and anticipation of the CGT rollout by 2026. “These factors have played a significant role in investors’ profit-taking in highly capitalised stocks on the NGX,” he said. “The overall negative news surrounding the market has had a strong impact.”
David Adonri, Vice Chairman of HighCap Securities, noted that short-term market adjustments are normal in a dynamic market like Nigeria’s. “The underlying fundamentals remain strong, and the year-to-date performance highlights the resilience and depth of our capital markets,” he said.
The market’s sharp decline underscores investor sensitivity to both global geopolitical developments and domestic fiscal policies.
