Global Markets Shaken as Trump’s Trade Tariffs Trigger Historic Nigerian Stock Plunge
Nigerian Investors Lose N659 Billion in Market’s Steepest Single-Day Decline
Nigerian stock markets experienced a devastating blow on Monday as the ripple effects of U.S. President Donald Trump’s newly implemented trade tariffs sent shockwaves through global financial markets. The Nigerian Exchange witnessed its most significant single-day decline in months, mirroring similar market crashes across Asia, Europe, and North America.
Nigerian Market Records Dramatic Losses
The Nigerian Exchange Limited (NGX) All-Share Index plummeted by 1.23 percent, shedding 1,295.02 points to close at 104,216.87 points. This steep decline wiped approximately N659 billion from market capitalization, which fell from N66.147 trillion to N65.488 billion. The dramatic drop represents the market’s worst performance since mid-January when the index fell by 1,526.1 points.
Trading volume remained robust despite the downturn, with investors exchanging 444.1 million shares valued at N11.148 billion across 15,690 deals. However, market sentiment was overwhelmingly negative as major stocks faced substantial selling pressure.
“What we’re witnessing is a direct consequence of global market uncertainty triggered by President Trump’s aggressive trade policies,” explained a financial analyst at a leading Nigerian investment firm. “Foreign investors are pulling back from emerging markets like Nigeria as they reassess risk exposure amid growing trade tensions.”
Energy and Food Processing Sectors Hit Hardest
Energy giant Oando led the market decline, dropping the maximum daily limit of 10 percent from N42 to N37.80 per share. Similarly, Honeywell Flour Mills plunged by 9.98 percent, closing at N10.19 from its previous N11.32 per share.
The banking sector wasn’t spared either, with all five FUGAZ banking majors recording significant losses:
ACCESSCORP declined by 9.27 percent
UBA fell by 7.60 percent
FIRSTHOLD dropped 6.35 percent
GTCO decreased by 5.62 percent
ZENITHBANK lost 5.01 percent
Global Market Meltdown
The Nigerian market collapse came amid a broader international market meltdown that some analysts are already dubbing “Black Monday.” Major global indices suffered historic losses:
The S&P 500 plunged 2.3 percent, extending its three-day decline to nearly 20 percent—officially entering bear market territory. This dramatic fall has erased approximately $5.3 trillion in market value in just two days.
The Dow Jones Industrial Average plummeted 1,015 points (2.6 percent), following unprecedented back-to-back 1,500-point losses last week. The tech-heavy Nasdaq Composite dropped 1.9 percent, pushing it 24 percent below its record high.
European markets opened significantly lower, with the UK’s FTSE 100 dropping more than 5 percent, its steepest decline in five years. Germany’s DAX initially crashed 10 percent before recovering some ground as the day progressed.
Asian markets were similarly affected, with Hong Kong’s Hang Seng index experiencing its fourth-largest single-day decline in history.
Market Bright Spots Amid the Gloom
Despite the overall market downturn, a few Nigerian stocks managed to buck the trend. The top five gainers included:
VFDGROUP: +10.00% to N62.70
TOTAL: +9.61% to N745.00
GUINEAINS: +9.52% to N0.69
INTENEGINS: +9.33% to N1.64
ABBEYBDS: +8.88% to N5.15
These positive performers, however, were far outnumbered by the losers. Among the worst hit were:
CORNEST: -10.00% to N2.97
OANDO: -10.00% to N37.80
NSLTECH: -10.00% to N0.45
RTBRISCOE: -10.00% to N2.16
HONYFLOUR: -9.98% to N10.19
Trading Activity Remains Strong Despite Market Fears
Despite the market turmoil, trading activity remained robust, with several stocks seeing high volumes:
FCMB led with 65.4 million shares traded
FIDELITYBK followed with 42.5 million shares
GTCO saw 34.4 million shares change hands
ACCESSCORP recorded 31.8 million shares traded
ZENITHBANK rounded out the top five with 31.6 million shares
In terms of value, GTCO led trading with N2.3 billion worth of shares, followed by ZENITHBANK (N1.4 billion), ARADEL (N944.6 million), FIDELITYBK (N818.3 million), and UBA (N709.5 million).
Outlook for Nigerian Markets
The Nigerian market’s year-to-date return has now decreased to just +1.25 percent, erasing most of the gains made earlier in the year. Market analysts remain cautious about the immediate outlook.
“We’re advising investors to maintain a defensive position until we see how global trade tensions develop,” said a market strategist at a prominent Nigerian securities firm. “While there may be buying opportunities emerging in quality stocks trading at discounted valuations, the volatility is likely to persist in the short term as markets digest the full implications of these trade policies.”
As Nigerian investors assess the damage from Monday’s decline, all eyes remain on international developments and potential policy responses that might help stabilize markets in the coming days.
Market Summary
Current ASI: 104,216.87
Previous ASI: 105,511.89
Day Change: -1.23%
Year-to-Date Performance: +1.25%
Volume Traded: 444.1 million shares
Market Capitalization: N65.4 trillion
