Nigeria’s equity market has lost N8.24 trillion in market value since the start of June as investors locked in gains following one of the strongest bull runs in the history of the Nigerian Exchange.

Market capitalisation dropped to N152.27 trillion as of June 18, down from a record N160.51 trillion at the end of May, as profit-taking across heavyweight counters accelerated the decline. The selloff, which analysts describe as a long-anticipated correction rather than a fundamental shift in market confidence, has unwound a significant portion of the gains accumulated through the first five months of the year.

The NGX All-Share Index climbed to a historic peak of 252,508 points in May 2026 before the correction set in, with the benchmark index losing more than 9,300 points from its all-time high as profit-taking intensified across major blue-chip stocks.

The decline has been broad-based and persistent. In the first week of June alone, the market lost N1.81 trillion on June 1, N2.28 trillion on June 3, and a further N580.65 billion on June 4 as investors intensified profit-taking in several high-flying stocks, before a modest recovery of N234.73 billion on June 5 provided brief relief.

The second week extended the bearish trend. Trading on June 16 saw investors lose N782 billion in a single session, marking the third consecutive trading day of losses, with declines recorded across insurance, banking, consumer goods, industrial, and technology stocks.

MTN Nigeria declined 6.95 per cent to close at N763.00, First HoldCo fell 6.80 per cent, and NGX Group lost 7.71 per cent during the correction period, with the Industrial Goods Index reflecting a significant impact from Lafarge Africa’s near-10 per cent loss.

What is driving the selloff

Market analysts are largely reading the correction as a healthy consequence of an extraordinary rally rather than a signal of deteriorating fundamentals.

The MD/CEO of Globalview Capital Limited, Aruna Kebira, noted that June typically brings a market slowdown, explaining that fourth-quarter results reported between February and April set the tone for the year, with dividends following shortly after. “With the second quarter results expected by the end of July, we have a bit of a gap where investors are uncertain, which can lead to downward pressure on the market,” he said.

Kebira also flagged an emerging dynamic influencing investor behaviour. Many investors are liquidating positions to prepare for the upcoming Dangote Refinery public offering. This development is pulling capital out of the equities market ahead of what is expected to be one of Nigeria’s most significant IPO events.

Imperial Asset Managers Limited advised that “a selective investment stance remains appropriate: investors are advised to focus on fundamentally sound, dividend-paying names and to view the indiscriminate selling in quality banking stocks as a potential source of value, while remaining disciplined given the prevailing thin liquidity.”

Futureview Limited similarly recommended that “investors trade cautiously, focusing on fundamentally sound stocks with attractive valuations while relying strictly on verified market data and news.”

The bigger picture

Despite the scale of the June losses, the market’s year-to-date performance remains exceptional by any measure. The year-to-date return of 56.24 per cent remains one of the strongest performances among major global equity markets in 2026, with Industrial Goods and Oil and Gas remaining the strongest-performing sectors, posting gains of 104.19 per cent and 123.24 per cent respectively.

Trading activity also remained relatively robust despite the correction, with total turnover rising sharply to 3.97 billion shares valued at N175.66 billion in 343,587 deals during the first week of June, compared with 2.40 billion shares worth N111.48 billion in the preceding week, suggesting that institutional and high-net-worth investors remained active and continued rotating positions amid the selloff.

The sustained trading volumes in the face of declining prices indicate that the market is digesting gains rather than fleeing them, a distinction that analysts say matters significantly for the outlook heading into the second half of the year.

With half-year earnings releases expected from July and the Dangote Refinery IPO looming as a major capital market event, the direction of Nigerian equities in the coming weeks will depend heavily on the quality of corporate results and the CBN’s continued management of liquidity conditions.

For now, the N8.24 trillion shed since June 1 is the market returning to earth after one of its most remarkable ascents. The question is not whether the rally is over. It is how much of it investors are willing to lock in before the next leg begins.

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