Nigeria’s equities market suffered a sharp reversal in November, when profit-taking erased N6.54 trillion from market capitalisation.

Despite a staggering N28.57 trillion to investors’ wealth in the first 11 months of 2025, buoyed by reforms in the foreign exchange market, easing monetary conditions and improved corporate earnings, November 2025 told a different story.

Market investigations revealed that the NGX shed N6.54 trillion, or 6.7 percent, in market capitalisation, declining from N97.829 trillion at the end of October to N91.286 trillion at the close of November. The ASI also fell by 10,605.93 points, or 6.88 percent, from its October close of 154,126.46 points.

The losses were exacerbated by one of the heaviest single-day declines in the market’s history, when investors lost about N4.6 trillion in a wave of profit-taking in highly capitalised stocks.

Market analysts attributed the sudden pullback to a combination of local policy concerns and geopolitical jitters. These included investor reaction to the Federal Government’s planned implementation of Capital Gains Tax (CGT) and heightened global uncertainty following comments attributed to former United States President, Donald Trump.

It will be recalled that Trump, in a social media post, reportedly said he had instructed the Pentagon to “prepare for possible action” and warned of immediate suspension of U.S. aid to Nigeria. In response, President Bola Tinubu rejected the comments, describing them as a misrepresentation of Nigeria’s “consistent and sincere efforts to safeguard freedom of religion and belief for all Nigerians.”

Data from the Nigerian Exchange Limited show that total market capitalisation climbed from N62.763 trillion at the close of trading in 2024 to N91.286 trillion as at November 28, 2025, representing a 45.45 percent or N28.57 trillion increase within the review period.

Similarly, the All-Share Index (ASI) posted a strong year-to-date performance, rising by 39.44 percent, from 102,926.40 basis points at the end of 2024 to 143,520.53 basis points on November 28, 2025.

The rally reflected robust demand for equities across key sectors of the market, underpinned by renewed investor confidence in the Nigerian economy.

Investment banker and stockbroker, Tajudeen Olayinka, said the sharp N4.6 trillion drop in one trading session was largely triggered by profit-taking on the back of the geopolitical scare and the CGT policy direction.

“The combination of these two factors played a significant role in investors’ decision to take profits in highly capitalised stocks on the NGX,” he said.

Despite the November setback, market operators maintained a positive outlook on the broader 2025 performance.

The Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, described the 11-month rally as a reflection of growing investor confidence and the Exchange’s strategic push to deepen participation.

“Crossing the 151,000-point threshold is a testament to the strength and adaptability of our market. It demonstrates how local and international investors continue to see value in Nigerian equities despite global headwinds,” Popoola said.

“At NGX Group, we remain committed to driving innovation, transparency and market expansion to sustain this growth trajectory.”

Analysts attributed the strong year-to-date performance to relative stability in the foreign exchange market, recovery by companies from FX-related losses, improved market liquidity, rising capital inflows and the increasing dominance of domestic investors. Other supporting factors included expanding portfolio investment, banking sector recapitalisation and insurance sector reforms.

Monetary easing by the Central Bank of Nigeria also played a key role, following the reduction of the Monetary Policy Rate to 27 percent in 2025—the first cut since the COVID-19 era. In addition, yields on Nigerian Treasury Bills declined to about 15 per cent in November 2025 from 18 percent a year earlier, redirecting funds into the equities market.

Managing Director of Globalview Capital Limited, Aruna Kebira, said falling inflation, moderating interest rates and improved corporate earnings all combined to attract investors to the stock market.

“The yields in the money market are no longer as attractive as they were in 2024, forcing discerning investors in search of better returns to look to equities,” he said, adding that improving liquidity conditions could further support a sustained bull run into 2026.

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