Nigeria’s financial markets opened November 2025 on a negative note as both the naira and equities recorded sharp declines following comments by U.S. President Donald Trump, who threatened potential military action against Nigeria over alleged religious persecution.
According to data from the Central Bank of Nigeria (CBN), the naira, which had earlier traded at a 2025 peak of ₦1,421.73/$, weakened to ₦1,436.34/$ on Monday a 1.03 per cent drop, equivalent to a ₦14.61 loss in a single day. The local currency also slipped on the parallel market to ₦1,455/$ amid growing investor anxiety and mounting foreign exchange demand pressure.
The currency slump followed a tense weekend after President Trump, through his Truth Social platform, labelled Nigeria a “country of particular concern” and directed the U.S. Department of War to prepare for “possible action” should the alleged killings of Christians continue. Trump described the situation as a “Christian genocide,” a statement that triggered widespread global debate and uncertainty about its diplomatic and economic impact on Africa’s largest economy.
The ripple effect of the remarks quickly hit financial markets. Trading at the Nigerian Exchange Limited (NGX) turned bearish on Monday, with the All-Share Index falling by 0.25 per cent to 153,739.11 points, cutting year-to-date gains to 49.37 per cent. Market capitalisation also declined by ₦245.88 billion to ₦97.58 trillion.
The downturn was largely driven by profit-taking in key stocks such as Aradel Holdings (-9.21 per cent) and Access Corporation (-3.07 per cent). Market sentiment remained weak, as 38 stocks declined compared to 19 that gained. Union Dicon topped the gainers’ chart with a 9.93 per cent rise, while Honeywell Flour Mills led the losers with a 10 per cent drop.
Trading activity slowed significantly, with the total volume and value of shares traded plunging by 87.94 per cent and 44.64 per cent, respectively, to 627.5 million units valued at ₦25 billion. United Bank for Africa (UBA) dominated trading, accounting for 136.8 million units (21.8 per cent of total volume) valued at ₦5.5 billion (22.2 per cent of total turnover).
Sectoral performance was mixed. The Oil & Gas (-3.94 per cent), Commodities (-1.85 per cent), Insurance (-1.48 per cent), and Banking (-0.22 per cent) indices all closed negative, while Consumer Goods managed a 0.49 per cent uptick. The Industrial Goods index remained unchanged.
In the bond market, Cowry Assets Management reported that demand for Nigeria’s Eurobonds weakened, pushing average yields up by five basis points to 7.70 per cent. The firm attributed this to rising global risk aversion, macroeconomic uncertainty, and geopolitical tension. Bloomberg data showed that Nigeria’s dollar bonds were the worst-performing among emerging markets, with all ten notes ranking among global laggards. The 2047 Eurobond declined the most, losing 0.6 cents on the dollar to 88.26 cents before later recovering slightly.
Despite the turbulence, some analysts expect the impact to be temporary. Tilewa Adebajo, CEO of CFG Advisory, described the market reaction as “a short-term blip.” He noted that global markets were already showing signs of stabilisation, adding that Nigeria’s recent removal from the FATF Grey List strengthened its long-term outlook.
However, Dr. Musa Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), warned that Trump’s threat could damage investor confidence. He described the comments as “unwarranted, counterproductive, and destabilising,” arguing that they heighten risk perception and undermine faith in Nigeria’s economy.
Yusuf urged Nigeria to strengthen internal security and governance but cautioned that relations with foreign powers should remain “cooperative, not coercive.” He warned that any unilateral military action would harm Nigeria’s economy, destabilise West Africa, and worsen humanitarian conditions.
Analysts believe that restoring stability will depend on calm diplomacy, confidence-building measures, and consistent macroeconomic management by the Federal Government and the CBN.
