Nigeria’s Stock Market Loses Nearly ₦2 Trillion as Investors Sell Off Shares

Nigeria’s stock market has suffered a major setback, with investors losing about ₦1.9 trillion in market value last week as widespread profit-taking triggered heavy selling across several major stocks. The decline came after the Nigerian Exchange (NGX) had recorded a strong performance the previous week, when investors gained about ₦3.73 trillion in market value. The sharp reversal highlights the cautious mood currently sweeping the market. Analysts have linked the latest decline largely to profit-taking, as investors who benefited from earlier gains moved to lock in their profits. The market was also affected by investors repositioning their portfolios ahead of the highly anticipated Dangote Petroleum Refinery Initial Public Offering (IPO). The NGX All-Share Index fell by about 1.60 per cent, while market capitalisation dropped to approximately ₦157.59 trillion during the week. Market breadth was also weak, with far more stocks declining than gaining. One major development influencing investor decisions is Dangote Refinery’s planned IPO. The refinery is seeking to raise about ₦2.15 trillion through the offer, making it one of the largest capital-raising exercises in Nigeria’s stock-market history. With investors preparing to participate in the offer, some may be selling existing holdings to free up cash for the new investment opportunity. This has added to the selling pressure already present in the market. The refinery recently reported ₦19.13 trillion in revenue for the first half of 2026, strengthening expectations surrounding the massive share offering. Despite the recent losses, the market has continued to attract interest from investors looking at Nigeria’s strong corporate earnings and improving economic outlook. The market also showed signs of recovery during the week, with Seplat Energy recording a 10 per cent gain in one session and helping the NGX recover from a two-day decline. The market added about ₦100.51 billion on that day. Recent analysis has also highlighted Nigeria’s strong year-to-date performance and renewed investor interest driven by corporate earnings, banking-sector gains and a more stable naira.The coming trading sessions could be important as investors balance existing shares with the opportunity presented by the Dangote Refinery IPO. If investors continue selling shares to raise funds, the NGX could experience further short-term pressure. However, renewed buying interest could also emerge if investors believe current prices present attractive opportunities. For now, the latest market movement appears to be more about profit-taking and portfolio repositioning than a complete loss of confidence in Nigerian equities. The big question investors will be watching is whether the NGX can regain its momentum after the Dangote IPO-related repositioning settles down.