The effect of bailout on the large portfolio wipe out cannot be over emphasized. The effect can be said to be positive in that the trend of liquidation hovering over the Nigerian capital market as well as lack of investors’ confidence can be said to be effectively solved. The banks experienced some form of liquidation due to the corruption going on in the banking sector. It has also tended to affect the confidence level of investors in that they are now thus scared of losing their money for investing. They are also discouraged by the fact that the system of granting credit facilities such as loans as well as the fact that it is virtually impossible for small investors to get loans due to too much collateral which they obviously cannot meet.