By David Akinmola
Nigeria’s equities market suffered one of its steepest single-day declines in recent years, wiping out about N4.6 trillion in investor wealth following a wave of panic sell-offs triggered by mounting macroeconomic uncertainties and renewed fears over fiscal and monetary policy risks.
The benchmark All-Share Index (ASI) of the Nigerian Exchange (NGX) plunged sharply as investors exited large-cap stocks across banking, telecoms, industrial goods, and consumer sectors. Market operators attributed the downturn to a combination of policy concerns, weak investor sentiment, and external pressures unsettling the financial markets.
Analysts said renewed anxiety over potential adjustments to monetary policy, particularly expectations of another interest rate hike by the Central Bank of Nigeria (CBN), pushed many institutional investors into safe-haven assets. The spike in fixed-income yields has also intensified the shift away from equities.
Additionally, heightened political and geopolitical uncertainty continues to worsen investor appetite. Concerns over slow economic reforms, pressures on the naira, and external developments—including global market volatility—are forcing foreign portfolio investors to scale back exposure to Nigerian assets.
The sell-off was further amplified by fears surrounding new tax proposals and regulatory actions expected to reshape the financial markets, prompting many domestic investors to lock in profits from earlier gains.
Market operators noted that the decline was broad-based, affecting nearly all major sectors. Blue-chip stocks, including leading banks and industrial giants, recorded significant price drops as sell orders outweighed buy interests.
Despite the setback, analysts maintain that the downturn reflects short-term panic rather than structural market weakness. They predict that bargain hunters may gradually return once clarity emerges on government economic direction and interest rate decisions stabilise.
Investors are now watching the CBN’s next monetary policy stance, federal fiscal moves, and global economic signals, which will determine the pace of market recovery in the coming weeks.
