Nigeria’s financial markets recorded mild losses on Monday following U.S. President Donald Trump’s threat of possible military action against Nigeria over alleged persecution of Christians.
The remark, which triggered geopolitical tension and investor caution, led to declines in both the equities and foreign exchange markets.
Data from the Nigerian Exchange (NGX) showed that the All-Share Index dropped by 0.25 per cent, reducing total market capitalization by about ₦245 billion. Market value fell from approximately ₦97.8 trillion to ₦97.5 trillion, as traders offloaded risk-sensitive stocks amid fears of global backlash.
The naira also weakened slightly in the official market, slipping to around ₦1,436 per dollar, compared with ₦1,422 per dollar at the end of last week. Dealers attributed the fall to heightened dollar demand and market speculation linked to the political tension.
Analysts say the development underscores how fragile investor confidence remains in emerging markets, especially when foreign policy uncertainties intersect with local economic vulnerabilities.
They warned that prolonged tensions could pressure foreign inflows, deepen exchange rate volatility, and weaken Nigeria’s macroeconomic stability.
However, some market watchers described the decline as temporary, noting that ongoing reforms in the fiscal and monetary sectors may help limit wider contagion if stability is restored.
