The Nigerian Exchange (NGX) has lost N5 trillion in value, according to The Guardian Nigeria News, as investor anxiety over the upcoming election and widespread profit-taking triggered a sharp sell-off. The decline follows a recent peak where the market's total capitalization reached N160 trillion.
The Guardian Nigeria News reports that the combination of pre-election uncertainty and investors cashing in gains wiped out the N5 trillion from the exchange. This downturn is part of a broader trend, with separate reports from THISDAYLIVE noting that profit-taking persisted, shedding an additional N555.7 billion in a single session. Punch Newspapers also documented the NGX extending its decline, driven by sell-offs in the energy and insurance sectors.
The impact has been significant for the country's wealthiest individuals. Business News Nigeria reported that Nigerian billionaires collectively lost $2.3 billion in one day as stocks hit a six-week low. The sustained selling pressure reflects a cautious mood among investors, who are apparently choosing to secure profits ahead of the political uncertainty surrounding the election period.
The market's recent peak at N160 trillion now appears to be a high-water mark, at least for the short term, as the correction continues. The losses across multiple trading sessions, as detailed by Proshare's financial headlines, suggest a broad-based retreat rather than a sector-specific issue. Investors are now watching to see if the sell-off stabilizes or if the pre-election anxiety continues to weigh on market sentiment in the coming sessions.
