Nigerian banking stocks faced heavy selling this week, dragging the NGX All-Share Index down and shrinking market capitalization from over ₦99 trillion to about ₦92 trillion. The NGX Banking Index led the decline, reflecting investor caution amid regulatory and geopolitical concerns.

Key factors driving the sell-off include:

Capital Gains Tax worries: Proposed reforms have unsettled both domestic and foreign investors.

Geopolitical tensions: Concerns over U.S.–Nigeria relations and potential tariffs have increased risk aversion.

Profit-taking and dilution fears: Banks issuing new shares and earlier strong gains have prompted some investors to cash out.

Regulatory pressures: Tighter Central Bank oversight, rising costs, and high inflation are weighing on banking sector outlooks.

Analysts say the correction may help rebalance the market, but uncertainty around policy changes and global risks keeps investors on edge. Visit www.jocomms.com for more news.