Nigeria’s equity market recorded a significant downturn, losing N1.45 trillion in market capitalization over the past week. This decline has raised concerns among investors and analysts about the short-term outlook of the market amidst prevailing economic challenges.
The drop in market value was attributed to widespread sell-offs across various sectors, fueled by uncertainties around macroeconomic policies, rising inflation, and fluctuating foreign exchange rates. The All-Share Index (ASI) of the Nigerian Exchange (NGX) also fell sharply, reflecting negative sentiment among market participants.
Key sectors, including banking, consumer goods, and industrials, experienced notable declines, with several blue-chip stocks taking substantial hits. The bearish trend was further exacerbated by profit-taking activities, as investors sought to cash in on gains from previous rallies.

Analysts have expressed concern over the equity market’s performance, noting that investor confidence remains fragile due to inconsistent policy signals and the broader economic environment. They emphasized the need for stability in fiscal and monetary policies to attract and retain investment in the capital market.
Despite the recent losses, market experts believe the downturn could present buying opportunities for long-term investors. “Valuations in some segments of the market are becoming attractive, and this could trigger renewed interest from bargain hunters,” one analyst noted. However, the pace of recovery will largely depend on improvements in economic fundamentals and policy clarity.
The equity market’s performance underscores the need for decisive actions to address Nigeria’s economic challenges, including enhancing foreign exchange liquidity, curbing inflation, and fostering investor-friendly policies. Stakeholders are hopeful that proactive measures by the government and regulators can help stabilize the market and restore investor confidence.
As the market opens a new week, attention will be focused on key economic indicators and corporate earnings reports, which could influence trading activities and set the tone for the weeks ahead.
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