Nigeria’s stock market witnessed a sharp decline on Tuesday as fears over a proposed 25 percent capital gains tax and renewed U.S. threats unsettled investor confidence.
Market analysts attributed the bearish trend to panic sell-offs by both institutional and retail investors seeking to secure profits ahead of the possible implementation of the tax.
The uncertainty was further compounded by reports of heightened diplomatic tension following U.S. presidential candidate Donald Trump’s warning of potential sanctions and economic strikes against nations accused of financial mismanagement, including Nigeria.
As a result, the All-Share Index recorded a notable drop, with losses in key sectors such as banking, oil and gas, and industrial goods. Market capitalization also fell significantly, reflecting declining investor sentiment.
Financial experts have urged the Federal Government to clarify its position on the capital gains tax proposal, noting that such ambiguity could drive away both local and foreign investors at a time when Nigeria’s economy is struggling to stabilize.
They also called for calm, emphasizing that reactionary policies and global uncertainties should not derail the gradual recovery of the capital market.
