Nigeria’s financial markets opened November on a negative note as both the naira and equities weakened sharply following threats by U.S. President Donald Trump of possible military action against Nigeria over alleged religious persecution.
Data from the Central Bank of Nigeria (CBN) showed that the naira, which traded at a year-high of ₦1,421.73/$, depreciated to ₦1,436.34/$ on Monday, a loss of ₦14.61 or 1.03 per cent in a single day.
At the parallel market, it further fell to ₦1,455/$, amid rising investor uncertainty and foreign exchange pressures.
The sell-off came after a weekend of geopolitical tension, as President Trump, posting on Truth Social, described Nigeria as a “country of particular concern” and instructed the U.S. Department of War to prepare for “possible action” should alleged attacks on Christians persist.
His comments, centred on what he called a “Christian genocide,” triggered global debate and concerns about potential diplomatic and economic fallout for Africa’s largest economy.
At the Nigerian Exchange Limited (NGX), bearish sentiment dominated trading on Monday.
The All-Share Index slipped 0.25 per cent to close at 153,739.11 points, cutting year-to-date gains to 49.37 per cent. Market capitalisation fell by ₦245.88bn to ₦97.58tn.
Losses in Aradel Holdings (-9.21%) and Access Corporation (-3.07%) weighed on the market, as 38 stocks declined compared to 19 gainers. Union Dicon led the gainers’ chart (+9.93%), while Honeywell Flour Mills topped the losers (-10.00%).
Trading activity also slowed considerably, total volume and value traded dropped by 87.94% and 44.64%, respectively, to 627.5 million units worth ₦25bn.
United Bank for Africa (UBA) led both volume and value, accounting for 136.8 million units (21.8%) worth ₦5.5bn (22.2%).
Across sectors, performance was mixed: Oil & Gas (-3.94%), Commodities (-1.85%), Insurance (-1.48%), and Banking (-0.22%) all declined, while Consumer Goods gained 0.49%. The Industrial sector closed flat.
In the bond market, Cowry Assets Management reported weaker demand for Nigeria’s Eurobonds, with average yields rising 5 basis points to 7.70%.
The firm attributed this to heightened global risk aversion and geopolitical concerns.
According to Bloomberg, Nigeria’s dollar bonds were the worst performers among emerging markets on Monday.
All ten of the country’s Eurobonds ranked among global underperformers, with the 2047 note dropping the most, down 0.6 cents to 88.26 cents on the dollar before trimming some losses.
Despite the turmoil, Tilewa Adebajo, CEO of CFG Advisory, described the reaction as “temporary.”
“This appears to be a mere blip,” Adebajo said. “Global markets are already stabilising, and with Nigeria’s recent removal from the FATF Grey List, the fundamentals remain strong.”
However, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), warned that Trump’s comments could have lasting economic consequences.
“The U.S. President’s threat of military intervention is unwarranted, counterproductive, and economically destabilising,” Yusuf said.
“Such statements increase risk perception and undermine investor confidence.”
He urged the Nigerian government to pursue diplomatic engagement rather than confrontation, adding that:
“Unilateral military action would not only harm Nigeria’s economy but also destabilise the region. The way forward is diplomacy, cooperation, and mutual respect for sovereignty.”
As markets await clarity on U.S policy and Nigeria’s diplomatic response, analysts say restoring calm and confidence, through consistent macroeconomic policy and effective communication, will be critical to maintaining stability.
