Nigerian Market Rebounds as Clarity on CGT Calms Investor Fears

The Nigerian equities market rebounded as clarity on the Capital Gains Tax (CGT) erased investor fears. The market experienced a dramatic mid-week reversal, recovering from significant losses earlier in the year.

The sell-off was initially fueled by uncertainties surrounding the proposed CGT adjustments and geopolitical worries, including threats of potential military action by former U.S. President Donald Trump towards Nigeria.

The market reaction was largely driven by uncertainty over the impact of the proposed tax changes on listed equities. Investor anxiety was further exacerbated by fears of retroactive application of the new rules, prompting quick exits from positions and contributing to market decline.