Nigeria’s financial markets opened November 2025 on a shaky note, with the naira, equities, and bonds all suffering losses following U.S. President Donald Trump’s weekend threat of possible military action against the country. The warning, issued over alleged “Christian genocide,” triggered renewed concerns about political risk and investor confidence in Africa’s largest economy.
According to data from the Central Bank of Nigeria (CBN), the naira fell sharply by 1.03 per cent on Monday, sliding from its 2025 peak of ₦1,421.73/$ to ₦1,436.34/$ on the official window — a one-day loss of ₦14.61. The local currency also weakened in the parallel market, where it closed at ₦1,455/$.
The currency downturn came after Trump, through his Truth Social account on Saturday, described Nigeria as a “country of particular concern” and directed the U.S. Department of War to prepare for “possible action” if violence against Christians persisted. The remarks, widely reported by The PUNCH, sent ripples through global and local markets, compounding the country’s ongoing macroeconomic pressures.
Stocks Slip as Market Capitalisation Falls by ₦245.88bn
The uneasy atmosphere extended to the Nigerian Exchange Limited (NGX), where bearish sentiment dominated trading. The All-Share Index fell by 0.25 per cent to 153,739.11 points, trimming year-to-date gains to 49.37 per cent. Market capitalisation similarly dipped by ₦245.88 billion to ₦97.58 trillion, driven by profit-taking and heightened risk aversion.
Heavy selloffs in Aradel Holdings (-9.21%) and Access Corporation (-3.07%) contributed significantly to the downturn. Overall, 38 stocks declined, outnumbering 19 gainers, underscoring the fragile investor mood. Union Dicon (+9.93%) topped the gainers’ chart, while Honeywell Flour (-10.00%) led the laggards.
Trading activity also moderated sharply. Total volume and value traded plunged by 87.94 per cent and 44.64 per cent, respectively, to 627.5 million units worth ₦25.0 billion. United Bank for Africa (UBA) dominated both metrics, accounting for 136.8 million units (21.8%) valued at ₦5.5 billion (22.2%).
Sectoral performance was mixed: Oil & Gas (-3.94%), Commodities (-1.85%), Insurance (-1.48%), and Banking (-0.22%) all recorded losses, while Consumer Goods managed a 0.49 per cent gain. The Industrial Goods sector closed flat.
Bond Market Mirrors Risk Aversion
The cautious sentiment also extended to the fixed income market. According to Cowry Assets Management, demand for Nigerian Eurobonds weakened, with average yields rising by 5 basis points to 7.70 per cent — a reflection of defensive positioning by offshore investors amid “macroeconomic headwinds and heightened geopolitical risk aversion.”
Bloomberg reported that Nigeria’s dollar-denominated bonds were the worst performers among emerging markets on Monday, with notes maturing in 2047 losing as much as 0.6 cents on the dollar, before partially recovering to 88.26 cents.
Analysts Call for Calm, Stress Diplomacy Over Coercion
Market analysts and economists warned that political rhetoric from Washington could exacerbate Nigeria’s financial vulnerabilities.
Tilewa Adebajo, Chief Executive Officer of CFG Advisory, described the market reaction as temporary. “This is a mere blip,” he said in a note to The PUNCH. “Closing prices in global markets already reflect a recovery. Nigeria, taken off the Grey List, offers more sustainable pricing.”
However, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), cautioned that Trump’s remarks could erode foreign investor confidence.
“The U.S. President’s threat of military intervention in Nigeria is unwarranted, counterproductive, and economically destabilising,” Yusuf said in a policy brief. “Such statements send unsettling signals to investors, heighten risk perception, and undermine confidence in Nigeria’s economy. The path forward must be diplomacy, partnership, and mutual respect for sovereignty.”
As investors weigh the fallout, analysts expect near-term volatility across Nigeria’s currency and bond markets, with broader stability likely to hinge on both diplomatic de-escalation and clarity from U.S. policy circles.