NGX Loses ₦2.8trn in One Week as Investors Dump Stocks Over U.S. Invasion Fears

The Nigerian Exchange Limited (NGX) has recorded a massive loss of about ₦2.8 trillion in market capitalization within one week as investors sold off stocks amid growing fears of a possible United States military invasion of Nigeria.

Figures obtained from the NGX showed that the market capitalization, which stood at ₦56.65 trillion at the beginning of the week, plunged to ₦53.85 trillion by the close of trading on Friday, representing a 4.9 percent decline — the steepest weekly loss recorded in 2025.

The NGX All-Share Index (ASI) also dropped by 4.8 percent to close at 97,652.33 points, reflecting widespread losses in blue-chip stocks such as Dangote Cement, MTN Nigeria, BUA Cement, and Zenith Bank, which dragged the market deep into negative territory.

The sharp decline followed foreign media reports suggesting that Washington was considering limited military action in Nigeria over alleged human rights violations. The report triggered panic across financial markets, especially among foreign portfolio investors who swiftly began pulling out their funds.

Reacting to the development, NGX spokesperson, Tinuade Awe, said the Exchange was closely monitoring activities and assured that the market remained resilient despite the temporary shocks

.“The Nigerian capital market operates within a sound regulatory framework that ensures transparency and investor protection. We are confident that stability will return as investors refocus on long-term value,” Awe said.

Market analysts, however, attributed the selloffs not only to geopolitical concerns but also to weak domestic confidence and fears of possible fiscal tightening by the federal government.

“This is more of a reaction to uncertainty than a reflection of company fundamentals,” said Emmanuel Okorie, a Lagos-based capital market analyst. “Foreign investors tend to exit first when there’s political tension, and that has a ripple effect on local sentiment.”

Trading data showed that the week’s transactions fell sharply, with volume sliding to 527 million shares compared to over 619 million in the previous week. The total value of traded shares also dropped significantly.

Some analysts, however, described the decline as a potential correction that could open fresh entry opportunities for long-term investors.

“If the geopolitical fears subside, we expect a rebound. The Nigerian market has solid fundamentals, and this dip might attract bargain hunters,” noted Oluwaseun Adediran, an investment banker.

Meanwhile, the Securities and Exchange Commission (SEC) has urged investors to remain calm, assuring that the market fundamentals remain strong.

“We advise investors to avoid panic selling and to rely on verified information. The Nigerian capital market has weathered similar storms in the past.”

As of Friday, investor sentiment remained cautious, with analysts predicting that the coming week will determine whether the ₦2.8 trillion loss marks the start of a longer bearish trend or a temporary correction.