Nigeria’s equities market closed deep in the red on Friday, November 7, marking the fifth straight day of losses as investors continued to dump stocks amid fiscal policy concerns and mounting geopolitical tension.
The Nigerian All-Share Index (ASI) fell by 501.7 points to close at 149,524.8 points, down from 150,026.6 points the previous day. The 0.33% daily decline extended the week’s cumulative loss to 2.11%, erasing an estimated N2.8 trillion in market value.
Equity capitalization mirrored the bearish momentum, dropping to N94.9 trillion across 24,637 deals, compared to N95.3 trillion in the previous session. Market activity also thinned, as the total volume of shares traded fell to 527 million from 619 million recorded on Wednesday, signaling a growing retreat by both domestic and foreign investors.
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Some analysts believe the latest selloffs are being driven largely by fears surrounding the federal government’s planned 25% capital gains tax, which is scheduled to take effect in January 2026. The tax will apply to profits exceeding N150 million and is being interpreted as a signal that the government may be looking to squeeze additional revenue from investment income amid a worsening fiscal deficit.
Several portfolio managers have said that the move could drain liquidity from the market, especially among high-net-worth investors and institutional funds that rely on equities for long-term returns.
The proposed tax is believed to be raising serious questions about Nigeria’s investment climate, sending the wrong signal at a time when the market is already battling low confidence.
However, fiscal analysts believe the government is under pressure to expand its tax base as debt servicing consumes an increasing share of national revenue. With inflation still in double digits and oil production yet to recover fully, the administration’s fiscal space is tightening rapidly.
Adding to the unease are geopolitical tensions after U.S. President Donald Trump issued a warning of potential military action against Nigeria if the authorities don’t act fast to stop the killing of Christians. The threat has stirred anxiety among foreign investors, many of whom are reportedly reviewing their Nigerian exposure amid fears of sanctions or diplomatic fallout.
This renewed tension follows months of friction between Washington and Abuja, which many have tied to Nigeria’s vocal support for Palestine. The United States has stood by Israel, targeting countries that support Palestine in the Gaza conflict that has claimed thousands of lives before the ceasefire deal brokered by Donald Trump. Trump’s latest comments are seen as a sharp escalation that could have economic implications, especially for Nigeria’s already fragile foreign investment flows.
The selloff has cut across nearly all major sectors, including banking, consumer goods, and industrials, as traders race to protect capital. Analysts say the situation underscores how vulnerable the market has become to both policy unpredictability and external shocks.
On the gainers’ list, NCR and MCNICHOLS provided rare glimmers of green, rising 9.94% and 9.82%, respectively. But the decliners’ chart remained crowded, led by BERGER and CILEASING, which plunged 10.00% and 9.86%.
WEMABANK and CONHALLPLC topped the trading volume chart, driving the day’s activity despite the overall negative sentiment.
Financial analysts have warned that unless the federal government clarifies its capital gains tax policy and moves swiftly to restore investor confidence, the bearish trend could deepen into next week.