Figures cited by Premium Times show that the Nigerian Exchange (NGX) experienced a significant downturn on Tuesday, with investors losing approximately N1.14 trillion. This sharp decline in market capitalization followed the Central Bank of Nigeria’s Monetary Policy Committee (MPC) decision to maintain high interest rates to combat inflation. Large-cap stocks in the consumer goods and insurance sectors were the hardest hit as investors reacted to the tightening liquidity environment.
The sell-off affected major players such as BUA Foods and several insurance firms, dragging the overall market performance into the red. Despite the general gloom, Jaiz Bank emerged as a lone bright spot, leading the gainers’ chart with a 10% increase. Market analysts suggest that the high-interest-rate environment is driving institutional investors away from equities and toward fixed-income instruments, which currently offer more attractive and safer yields.
Financial experts believe this “correction” was expected given the hawkish stance of the apex bank. The CBN’s priority remains price stability and curbing the headline inflation rate, even if it means temporary pain for the stock market. Brokers on the floor of the Exchange have advised retail investors to maintain a long-term perspective and look for value in fundamentally sound stocks that have been oversold.
Further analysis from BusinessDay and The Punch confirms the market jitters. BusinessDay noted that “The MPC’s decision acted as a catalyst for profit-taking among institutional players.”
The Punch quoted a market analyst who stated, “The volatility is a natural reaction to the CBN’s signal that cheap money is not returning anytime soon.”
Echotitbits take:
The N1.14 trillion wipeout is a stark reminder of how sensitive the NGX is to monetary policy. While the loss is staggering on paper, it offers a “buy the dip” opportunity for savvy investors looking at the banking sector, which typically benefits from high interest rates. Expect the market to remain sideways until the next inflation data release.
Source: Vanguard – https://www.vanguardngr.com/2026/02/investors-lose-n1-14trn-as-ngx-reacts-to-mpc-decision/ , February 25, 2026
Photo credit: Vanguard
