The Nigerian Exchange Limited (NGX) staged a major rebound yesterday as renewed investor confidence lifted market capitalization by N2.593 trillion, closing at N92.478 trillion from N89.885 trillion the previous day.

The rally came on the heels of the assurance given by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during the market’s closing gong ceremony on Tuesday. The minister had promised that the Federal Government would review investors’ concerns about the Capital Gains Tax (CGT) policy.

According to Edun, “We have heard what you have said on Capital Gains Tax. We are looking at it, and we will consult. We may consult in a way that gives Nigeria the optimum result. We will discuss and, at the end, decide what is best for Nigeria and Nigerians, including your market.”

He emphasised that the government remains committed to engaging capital market stakeholders to ensure a balanced and growth-oriented outcome. “We have noted the concerns around Capital Gains Tax and will continue to engage with the capital market to ensure that any decisions taken deliver optimal outcomes for both Nigerians and the market,” he added.

Following the minister’s remarks, investor sentiment improved sharply, triggering widespread buying across major sectors. Market analysts had projected continued volatility, noting that bargain hunters may take advantage of the depressed prices in the coming sessions. An independent market analyst, Mr Aruna Kebira, said: “The persistent selloff is driven largely by profit-taking and macroeconomic worries.

Once the market finds its floor, we expect renewed interest from value investors seeking attractive entry points.” Speaking on the development, renowned economist and Managing Director, Financial Derivatives Limited, Mr Bismarck Rewane, had attributed it to investors’ apprehension over recently increased Capital Gains Tax (CGT).

He said investors, who, for long, were used to the 10 per cent CGT, are getting suddenly getting jittery over the expected 30 per cent that it was recently increased to by the Federal Government. The Chief Executive Officer of Investdata Consulting Limited, Mr Ambrose Omordion, has attributed the persistent sell-off in the Nigerian equities market to a combination of external and internal factors weighing on investor sentiment.