National Wire About Nigerians, Nigerian Business and Other Stories
The Nigerian Exchange (NGX) on Tuesday witnessed its worst single-day loss since March 2020, shedding 5.01% of its value as investors lost N4.8 trillion.
The selloff, triggered by factors including the introduction of capital gains tax on Nigerian equities, coup rumors, and US military intervention fears, cut across all market segments.
The bearish trend was widespread, with all major sectors – Banking, Consumer Goods, Oil & Gas, Insurance, and Industrial Goods – experiencing significant losses, cementing the NGX’s substantial single-day loss of N4.8 trillion, its biggest decline since the COVID-19 pandemic-induced market crash in March 2020.
However, Agricultural giants Okomu and Presco, as well as Airtel Africa, bucked the trend, holding steady amidst the market turmoil.
A further x-ray of the days trading, showed the equities market closed further in the RED zone as the NGX All-share index (-5.01%) continued its recent run of decline.
Also, the All sectoral sub-indices closed lower as early selloffs in banking counters paved way for weakness across board. Locals were observed in the aggressive selling with offshore participating in select names such as Stanbic, GTCO and Wapco. Biggest contributors to the decline were: Dangcem (-10.00%), MTNN (-10.00%), Buacem (-10.00%), GTCO (-7.69%), Transcorp (-10.00%) among others.
Market breadth was broadly negative with 56 losers versus 4 gainers recorded on the day.
Market turnover was NGN29.4bn ($20.45m) with offshore trades in Stanbic leading the block trades whilst locals participated in NB, FirstHoldco and a few other names. Year-to-date performance of the NGXASI now stands at 37.31%.
Market capitalization which closes on Monday at N94,526,136,973,969.34148,781.90 dropped Tuesday to
N89,884,957,025,698.53141,327.30
Reacting to the dip in the market, Dr. Paul Uzum, a Director at Halo Nigeria Asset Management Limited, believes the current stock market downturn is a major correction, stating, “The market has been on a sharp rally for the past three and half years.”
Uzum notes that next year’s pre-election period poses high political risk, typically bearish for the Nigerian market.
Edun Reassures Investors, Pledges Balanced Capital Gains Tax Outcomes as NGX Lists MREIF
Nigerian Exchange (NGX) today hosted the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, at the Closing Gong Ceremony to commemorate the listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) Series 2. The event underscored the capital market’s pivotal role in national development, particularly in addressing Nigeria’s housing deficit.
The listing took place against the backdrop of cautious trading in the equities market, as investors recalibrate portfolios in response to geopolitical tensions arising from the US–Nigeria diplomatic standoff, the proposed Capital Gains Tax (CGT), year-end portfolio rebalancing, and expectations of window-dressing by institutional players. While liquidity remains robust, analysts emphasize that aligning fiscal policy with investor expectations is critical to sustaining confidence and deepening long-term market participation.
Temi Popoola, Group Managing Director/Chief Executive Officer, NGX Group, reaffirmed the capital market’s role as a catalyst for inclusive growth and called on the Federal Government to ensure balanced outcomes in the implementation of the Capital Gains Tax. “The capital market is not only a platform for attracting investment but also a tool for creating wealth for Nigerians. Policies such as the capital gains tax must be carefully designed to balance government revenue objectives with investor confidence and market growth. NGX Group remains committed to supporting the Renewed Hope Agenda by channeling private capital into initiatives that deliver sustainable, long-term impact.”
Responding, Mr. Wale Edun assured stakeholders that the Federal Government has noted the concerns around Capital Gains Tax and remains committed to ongoing consultation with the market. “We have noted the concerns around Capital Gains Tax and will continue to engage with the capital market to ensure any decisions deliver optimal outcomes for both Nigerians and the market. At ₦100 per unit, MREIF allows ordinary Nigerians to participate in savings and investment, leveraging local resources to grow our economy, especially in the housing sector.”
The ceremony also highlighted the strength of collaboration between the Federal Government, MOFI, and the private sector in mobilising innovative financing for housing.
Ahonsi Unuigbe, Chairman, NGX, described the listing as a “defining step toward transforming Nigeria into a leading economy that ensures shared prosperity for all Nigerians.”
In his remarks, Jude Chiemeka, CEO, NGX, said MREIF demonstrates how the capital market can deliver practical solutions to national challenges: “By channeling private capital into housing, we are creating opportunities for long-term investment and wealth creation while addressing Nigeria’s housing deficit.”
Dr. Armstrong Ume Takang, Managing Director/CEO, MOFI, added: “MREIF provides long-term, low-cost mortgage financing to make homeownership a reality for millions of Nigerians, stimulating local economies across the housing value chain.”
The Closing Gong Ceremony positioned MREIF as a model for inclusive economic growth, illustrating how institutional capital can drive both financial stability and social impact. With over 1,000 mortgages already disbursed, the initiative continues to expand middle-class wealth and deepen Nigeria’s capital market.
