By Passman Akpos
Nigerian investors are feeling the heat as stock portfolios experience significant drops, leaving many beginners anxious about the market’s unpredictability.
Market analysts say the sudden dip is largely driven by investor sentiment. “Whenever there is uncertainty or fear in the market, many investors tend to sell off their shares, reducing demand and forcing stock prices to fall,” one expert explained. “Conversely, increased confidence drives prices up.”
The current market jitters are believed to be linked to the new Capital Gains Tax, set to take effect in January 2026. High Net Worth Individuals and institutional investors are reportedly offloading stocks to secure profits before the law comes into force.
Despite the turbulence, experts remain optimistic. “The market will always recover after a dip,” said a financial advisor. “Long-term value is tied more to company performance than to short-term sentiment. If you invest in solid companies and hold, you’re almost always going to profit—and outpace inflation.”
Many retail investors are seeking guidance on how to navigate the volatile period. Some advice includes using reputable stock trading apps and practicing patience. “Investing in the stock market is like making a marriage vow—‘for better, for worse’,” one investor shared. “Rest assured, it will go back and beyond the price you bought it. Patience is key. If you have the means, buy more to average your cost; if not, stay calm.”
As the market reacts to both local tax reforms and international developments—including recent decisions by former US President Donald Trump impacting global confidence—investors are being urged to remain strategic and cautious.
For beginners like Akande Muritala Abiola, the message is clear: pause, assess, and plan for the long term rather than panic.
