The Nigerian stock market experienced a sharp downturn on Tuesday, with its market capitalisation plunging from ₦94.526 trillion to ₦89.884 trillion — a loss of roughly ₦4.642 trillion.
The Nigerian Exchange Ltd. (NGX) ˗ reflected in the All-Share Index (ASI) which dropped by 7,454.60 points, or 5.01 per cent, closing at 141,327.30 from 148,781.90 the previous day. Market breadth was overwhelmingly negative, with 61 stocks falling and only four gaining.
Prominent stocks such as Dangote Cement Plc and MTN Nigeria Communications Plc were among the heaviest losers, each down by 10 % to close at ₦594 and ₦429.30 respectively. Other major declines included BUA Cement Plc (₦162), Transcorp Power Plc (₦39.60) and Oando Plc (₦36).
Industry participants attributed the sell-off to a combination of disappointing Q3 earnings, investor misinterpretation of foreign policy comments, and anxiety over a proposed 30 % capital-gains tax slated for January. As David Adonri, vice‐chairman of Highcap Securities Ltd., explained:
“The market had already started declining due to disappointing third-quarter results from some listed companies. Several banks could not sustain their previous dividend levels, while the consumer goods sector posted unimpressive results. These disclosures weakened market fundamentals.”
He further noted that “Many high-net-worth and institutional investors, who are the main targets of this policy, see it as a jumbo tax penalty and have started exiting or holding back investments.”
Despite the downturn, Adonri described the current state as a “buyers’ market”, suggesting that “any investor who has cash to deploy now will enjoy the market.”
Investors will now be watching closely to see if this correction continues or stabilises, and whether regulatory or fiscal policy signals could reverse sentiment.
