Market Meltdown Deepens As ₦2.8 Trillion Wiped Off Nigerian Exchange Amid Trump’s Warning And Policy Fears

 

The Nigerian Exchange Limited (NGX) closed the week on a grim note as bearish momentum swept through the trading floor, wiping out approximately ₦2.8 trillion from the market’s total value. The All-Share Index (ASI) continued its downward spiral, settling at 149,524.8 points on Thursday, a sharp decline of 501.7 points from the previous session. This marks the fifth straight day of losses and a 2.11 percent erosion in market value over the course of the week, signaling heightened investor unease and intensified sell pressure.

Trading sentiment remained broadly negative as investors unloaded equities amid swirling fears over fresh fiscal and geopolitical developments. The federal government’s proposed 25 percent capital gains tax on profits exceeding ₦150 million, expected to take effect in January 2026, is sending ripples through the market. The planned policy has triggered widespread uncertainty, particularly among institutional investors who see it as an added burden on already shrinking margins.

Adding to the turbulence, international headlines intensified panic after U.S. President Donald Trump issued a warning suggesting the possibility of military intervention in Nigeria, citing alleged national security concerns. Though the statement was not officially backed by the U.S. Department of Defense, the remark rattled foreign portfolio investors and exacerbated capital flight from Nigeria’s equity space. Market operators say the combined weight of policy jitters and global instability has fueled one of the sharpest weekly downturns seen this quarter.

Trading data from Friday reflected the sluggish sentiment that has persisted all week. Total transaction volume stood at 527 million shares across 24,637 deals, lower than the 619 million shares exchanged in the previous session. The market capitalization slipped further to ₦94.9 trillion from ₦95.3 trillion a day earlier, underscoring the persistent weakness in investor confidence.

Despite the gloomy tone, a few stocks managed to defy the tide. NCR led the gainers’ table with a 9.94 percent rise, closely followed by MCNICHOLS which appreciated by 9.82 percent. The gains, however, were not enough to offset the broader market losses driven by blue-chip selloffs. On the other end, BERGER and CILEASING emerged as the biggest decliners, shedding 10.00 percent and 9.86 percent respectively.

Market analysts described the week as one dominated by uncertainty and cautious trading. According to Lagos-based investment strategist, Femi Ogundipe, “The Nigerian market is facing a double-edged challenge. The proposed capital gains tax dampens local participation, while Trump’s rhetoric has made foreign investors jittery. Both domestic and offshore traders are taking defensive positions until there is clarity.”

Sectors across the board recorded negative closes, with banking and industrial stocks taking the hardest hit. WEMABANK and CONHALLPLC were the most active equities by volume, reflecting heavy rotation within the financial sector as traders sought to rebalance portfolios. Analysts expect this trend to persist in the short term as investors await a more stable economic and political environment before re-entering the market.

Retail investors have not been spared from the rout. Many who had re-entered the market earlier this quarter amid optimism over easing inflation and stronger corporate earnings are now facing renewed losses. Some brokers reported an increase in sell orders from small investors who fear deeper declines in the coming weeks.

Economists also noted that Nigeria’s macroeconomic backdrop remains fragile, and the stock market’s downturn is merely a reflection of broader concerns about policy consistency and governance risk. The uncertainty around the capital gains tax, analysts say, underscores the need for clearer fiscal communication from the government to avoid stifling investment sentiment.

As the trading week drew to a close, brokers called for calm, emphasizing that the market may experience a technical rebound if investors perceive an overreaction to recent events. Nonetheless, the prevailing atmosphere remains tense, and without reassuring statements from key policymakers, the NGX could continue to bleed value in the days ahead.

The ₦2.8 trillion loss over just one week serves as a stark reminder of how vulnerable the Nigerian market remains to both internal policy decisions and external geopolitical shocks. Whether stability can be restored soon will depend largely on government engagement with investors, clarity on tax implementation, and the easing of fears surrounding the potential U.S. intervention that has unsettled global markets.