The week leading up to November 7 did not just worry investors, it shocked the entire Nigerian market as news emerged that 4.6 trillion naira in value had been wiped out, a situation analysts described as a complete bloodbath.
Some people blamed the wipe out on fears around the Capital Gains Tax, while others pointed to wider policy concerns nicknamed ‘Trump’. But the real question is this: who or what truly caused this massive market drop?
In this insightful episode of Drinks and Mics, hosts Ugodre and Arnold sit with Folagbade Adeyemi, the Managing Director/CEO of Anchoria Securities, and Femi Ademola, the Managing Director and Chief Executive Officer of Aiico Capital. Together, they explain what really triggered the 4.6 trillion-naira market loss and delve deep into the surge in public offers and debt issuances.
They begin by examining the ₦4.6 trillion loss on the Nigerian Stock Exchange, which Ugodre described as a “complete bloodbath.” They explain that the massive drop was largely driven by uncertainty and confusion over how the Capital Gains Tax (CGT) would be implemented.
The conversation also looks at the sudden rise in capital raising through public offers and debt issuance which they explain the surge could be due to investors removing funds from Western markets into frontier markets like Nigeria and companies urgent need to boost their balance sheets after the impact of currency devaluation.
The team further discusses the NGX plan to revive the IPO market, the rise of private credit funds, and the unexpected recovery of consumer goods giants such as Nestle, Guinness, and UAC.
They also touch on global market concerns, the growing influence of artificial intelligence, and what the future may hold for investment funds and consumer goods companies in Nigeria.
Watch the latest episode of Drinks and Mics to get the insights you need to navigate today’s challenging financial climate.
