By David Akinmola
Nigeria’s equities market has taken a sharp tumble, with around ₦1.8 trillion wiped off market value in just four trading sessions amid mounting investor anxiety over a proposed capital gains tax (CGT) and escalating geopolitical risk stemming from recent remarks by Donald Trump.
The Nigerian Exchange (NGX) All-Share Index (ASI) fell from approximately 154,123.62 points at the previous week’s close to 150,026.55 points by Thursday, dragging year-to-date gains from 49.74 per cent to 45.76 per cent.
Industry sources say the sell-off was triggered by investor concern that the Federal Government’s plan to enforce a 25 per cent CGT on profits above ₦150 million from January 2026 could significantly erode returns from stock investments.
At the same time, market watchers point to the ripple effects of Trump’s threat to consider military action against Nigeria over alleged human-rights violations, which has added to the risk premium attached to Nigerian assets and spurred foreign investors to trim exposure.
The banking and consumer goods sectors bore the brunt of the downturn. Major banks such as Access Bank Plc, GTCO Plc, Zenith Bank Plc and Enterprise Trust Insurance (ETI) saw steep drops as institutional investors scaled back holdings. Meanwhile, companies like Dangote Sugar Refinery Plc, International Breweries Plc and Transcorp Plc also felt the heat as concerns about rising costs and weaker consumer demand weighed on sentiment.
Market turnover remained high with over 2.4 billion shares valued at around ₦77 billion traded during the week, suggesting that many investors are repositioning rather than exiting entirely.
Analysts say that while profit-taking and portfolio rotation into fixed-income instruments also contributed to the slide, the dominant driver is policy uncertainty. One Lagos-based fund manager told The Guardian that “investors are reacting more to uncertainty than to the tax itself.”
With November underway, the market’s tone remains cautious. If clarity on the CGT policy and geopolitical signals do not improve, the month could emerge as the weakest for the NGX in 2025.
As things stand, investors are closely watching for official communication from the Federal Government and the regulators that will either allay fears or intensify the downturn.
