Calm has returned to the Nigerian equities market following Tuesday’s historic meltdown in which the Nigerian Exchange (NGX) suffered its worst decline since March 2010. The market, which lost a staggering ₦4.641 trillion on November 11, 2025, has now begun a swift recovery after an intervention from the Ministry of Finance.
The bourse had been on a downward spiral for weeks, but the sell-off reached its peak on Tuesday as market capitalisation plunged from ₦94.526 trillion to ₦89.885 trillion.
The All-Share Index (ASI) also dropped sharply by 7,454.6 points (5.01%), the steepest decline in 15 years.
A series of losses led to the collapse, as the exchange shed ₦2.8 trillion two weeks earlier and ₦964 billion the following week.
The rout affected virtually all major stocks:
• Dangote Cement – down 10%
• MTN Nigeria – down 10%
• BUA Cement – down 10%
• GTCO – down nearly 8%
Every major sector closed in the red:
• Industrial – down 8.5%
• Banking – down 7.3%
• Oil and Gas – down 4.6%
• Insurance – down 4.3%
Why the Market Crashed
Analysts attributed the panic-driven withdrawals to fears over a proposed 30% Capital Gains Tax on stock transactions and heightened geopolitical tension stemming from threats by U.S. President Donald Trump regarding potential military action in Nigeria.
The combination of tax concerns, global uncertainty, and year-end portfolio rebalancing triggered widespread sell-offs across the market.
Edun Calls for Calm at NGX, Promises Ongoing Engagement
To address the anxiety, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, intervened during the Closing Gong Ceremony marking the listing of the MREIF Series 2.
He urged investors to remain calm amid “cautious trading in the equities market”, assuring that the Federal Government was aware of the concerns surrounding the proposed tax.
“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,” Edun said.
“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.”
His remarks immediately restored confidence, easing the sell-off and encouraging investors to return to the market.
The response from investors was instant. On Wednesday, November 12, the market rebounded strongly, recovering ₦2.5 trillion in a single trading day.
The rally continued:
• November 13 – investors gained another ₦1 trillion
• November 14 – the week closed with an additional ₦20 billion profit
With the rebound, equity capitalisation has surged back to ₦94.5 trillion, reversing most of the losses incurred on Tuesday.
Financial analyst Omiete Inko-Tariah advised investors to remain level-headed and avoid panic selling during periods of volatility.
He noted that despite the sudden crash, the market still shows a 40% gain year-to-date, urging investors to focus on long-term opportunities.
Speaking on a podcast, he explained:“Every market meltdown hides the same secret. Money doesn’t disappear. It simply changes hands. From the fearful to the patient. From the sellers to the buyers. Never panic sell.”
He added: “When everyone is dumping good stocks out of fear, that’s when wealth quietly transfers from the impatient to the informed. Crashes reset prices. They give ordinary investors a chance to own extraordinary assets at discounts the market may never offer again.”
Encouraging investors to stay strategic rather than emotional, he said:“Remember, when you buy stocks, you are buying businesses, not stock prices. Smart investors don’t chase fear… they capitalise on it.”
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