The Nigerian stock market lost about N246 billion on Monday as cautious investors reacted to U.S. President Donald Trump’s recent designation of Nigeria as a “Country of Particular Concern,” citing religious intolerance and the alleged persecution of Christians. Trump also threatened possible military action should the Nigerian government fail to address the violence.
Despite the sharp market reaction, financial analysts have urged investors to remain calm, stressing that Nigeria’s economic fundamentals remain strong.
Credits: Ndubisi Francis in Abuja, Nume Ekeghe and Kayode Tokede in Lagos
At the close of trading, the market capitalisation fell by 0.25%, from N97.829 trillion at the start of the week to N97.583 trillion, while the Nigerian Exchange (NGX) All-Share Index (ASI) dropped by 387.35 basis points, or 0.25%, to close at 153,739.11 points.
Market analysts attributed the mild decline largely to profit-taking in key stocks rather than to any fundamental weakness.
In a post on Truth Social, President Trump said he had directed the Pentagon to “prepare for possible action” and warned that U.S. aid to Nigeria might be suspended.
Reacting, President Bola Tinubu dismissed Trump’s remarks as a “misrepresentation” of Nigeria’s ongoing efforts to safeguard religious freedom and peaceful coexistence.
According to Mr Aruna Kebira, Managing Director of Globalview Capital Limited, the dip in the market was mainly driven by investors locking in gains from stocks like Aradel Holdings Plc.
“If the downward trend persists, it may be partly linked to Trump’s comments,” Kebira noted. “But it’s too early to conclude that the U.S. statement directly influenced investor sentiment.”
Similarly, Mr David Adnori, Vice President of Highcap Securities Limited, said the Nigerian market—now largely driven by domestic investors—remains resilient against external shocks.
A Bloomberg report also showed that Nigeria’s dollar-denominated bonds fell across the maturity curve following Trump’s remarks, with the 2047 notes dropping 0.6 cents to 88.26 cents on the dollar, ranking among the worst performers in emerging markets.
However, several analysts told THISDAY that the selloffs were largely emotional and short-term, with Nigeria’s underlying fundamentals intact.
A fixed-income trader who spoke anonymously described the situation as “a knee-jerk reaction that may actually create entry opportunities for long-term investors.”
Jimi Ogbobine, Head of Consulting at Agusto Consulting, said such geopolitical jitters are typical but usually resolved through diplomatic engagement.
“While Trump’s comments have unsettled investors, Nigeria and the U.S. have strong trade and security ties that make prolonged tensions unlikely,” Ogbobine explained, highlighting both nations’ shared interests in the oil, gas, and investment sectors.
Likewise, Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), advised the government to prioritise strategic diplomacy over confrontation.
“Nigeria must engage the U.S. in high-level discussions to clarify facts and de-escalate tensions,” Yusuf said. He also urged greater cooperation in intelligence sharing, counterterrorism, and peacebuilding, alongside efforts to strengthen domestic stability.
“Military threats only heighten risks,” he cautioned. “Nigeria’s response should project calm, sustain investor confidence, and protect economic stability through dialogue and proactive diplomacy.”
About The Author
