The Nigerian stock market suffered a sharp decline in the first week of November, with investors losing a massive N2.8 trillion at the Nigerian Exchange Limited (NGX).
The week-long bearish trend saw losses across all five trading sessions, from November 3 to November 7, amid heightened investor anxiety following U.S President Donald Trump’s threats of military action against Nigeria.
Trump, who recently labeled Nigeria a “Country of Particular Concern,” warned of possible U.S. intervention and the suspension of aid over alleged persecution of Christians.
The comments sparked a wave of market sell-offs and heightened fears among investors.
Analysts say the president’s remarks could increase Nigeria’s risk premium, erode investor confidence, and dampen gains recorded from recent economic reforms.
The downturn began on Monday, when the NGX All-Share Index (ASI) dropped from 154,126.46 points to 153,739.11 points, while market capitalization declined from N97.829 trillion to N97.582 trillion, wiping out N244.9 billion in a single day.
Losses deepened as the week progressed, with investors shedding N611.96 billion on Tuesday, N1.31 trillion on Wednesday, N347.75 billion on Thursday, and N318.78 billion on Friday.
By the end of the week, the ASI had fallen by 0.25%, bringing year-to-date returns down to +49.37%.
The sell pressure was largely concentrated in banking, oil & gas, and consumer goods stocks, as investors took profit amid market uncertainty.
During the week, investors traded 3.575 billion shares worth N107.011 billion across 146,429 deals, compared with 7.479 billion shares valued at N145.429 billion the previous week.
The Financial Services Industry dominated activity, accounting for 82.39% of total volume and 61.59% of total value, with 2.946 billion shares worth N65.904 billion exchanged in 62,817 deals.
It was followed by the Services Industry (147.325 million shares worth N1.511 billion) and the Consumer Goods Industry (147.307 million shares worth N11.195 billion).
The top three equities, Fidelity Bank Plc, FCMB Group Plc, and Aso Savings & Loans Plc, collectively accounted for 1.288 billion shares worth N19.3 billion, representing 36.03% of total volume.
Out of all listed stocks, 20 gained, 75 declined, and 51 remained unchanged during the week.
Notable gainers included NCR Nigeria Plc (+20.94%), Eunisell Interlinked Plc (+20.17%), and Union Dicon Salt Plc (+9.93%).
Biggest losers were Sovereign Trust Insurance Plc (-28.21%), C&I Leasing Plc (-20.16%), and Skyway Aviation Handling Company Plc (-18.99%).
Despite the bearish equities market, the NGX saw positive activity in the debt segment with the listing of Elektron Finance SPV Plc’s N4.64 billion infrastructure bond.
The 22% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond, maturing in July 2040, is the first tranche under Elektron’s N200 billion bond issuance programme.
Backed by InfraCredit and co-obligated by Victoria Island Power Limited, the issue is regarded as a low-risk, high-yield asset for institutional investors.
The bonds, listed at N1,000 per unit, offer semi-annual coupon payments and amortized redemption starting 36 months post-issuance.
The strong institutional participation reflects renewed confidence in infrastructure-backed investments.
Vetiva Advisory Services Limited acted as lead issuing house, alongside Anchoria Advisory Services, ARM Capital, CardinalStone Partners, FBNQuest Merchant Bank, and Iron Global Markets Limited.
Telecoms giant MTN Nigeria Plc also saw its stock value drop 8.3% last week, closing at N477 per share—down from N520.10, its 52-week high.
The company’s market capitalization declined to N10.014 trillion as investors trimmed holdings ahead of the interim dividend qualification date.
Despite the dip, MTN Nigeria reported a strong financial rebound, with profit after tax up 245% year-on-year to N687 billion in the first nine months of 2025. The board declared an interim dividend of N5 per share, payable to shareholders on November 28, 2025.
Analysts believe the market’s sharp losses were amplified by political risk and global sentiment.
Economist Dr. Muda Yusuf warned that Trump’s comments could “undermine Nigeria’s image as a stable investment destination” and drive up borrowing costs.
Market expert Adebayo Adeleke, former General Secretary of the Independent Shareholders Association of Nigeria (ISAN), said the downturn was largely due to panic selling.
“When more people are selling than buying, prices inevitably fall,” he explained. “However, it’s unusual to see such declines during earnings season, when results should boost market sentiment.”
Adeleke added that Nigeria’s market is now dominated by local investors rather than foreign players, which should limit the scale of long-term damage.
“We might start seeing a recovery by midweek as investors reassess undervalued stocks,” he predicted.
