Naira dips and Nigerian stocks fall after Trump’s military threat over religious persecution

Nigeria’s financial markets took a downturn at the start of November 2025, with the naira weakening and shares dropping sharply following US President Donald Trump’s military threat against Nigeria over the alleged Christian persecution.
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Data from the Central Bank of Nigeria showed the naira, which had peaked at N1,421.73 to the dollar earlier in the year, slipping to N1,436.34 on Monday, marking a 1.03 percent daily decline. The parallel market rate also fell to N1,455.
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The depreciation was believed to have resulted due to Trump’s declaration on his Truth Social platform, labeling Nigeria a “country of particular concern” and urging the US military to take action if the alleged killings of Christians persist.
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The Nigerian Exchange Limited mirrored this unease, with the All-Share Index dropping 0.25 percent to close at 153,739.11 points and market capitalization shrinking by N245.88 billion.
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Stocks such as Aradel Holdings and Access Corporation suffered notable selloffs, while trading volume and value plunged drastically.
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Sector performance was mixed, with losses in Oil & Gas, Commodities, Insurance, and Banking, partly offset by gains in Consumer Goods. Cowry Assets Management noted increased yields on Nigeria’s Eurobonds, reflecting the decline in the appetite of investors due to global risk aversion and geopolitical concerns.
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Bloomberg ranked Nigeria’s dollar-denominated bonds among the worst performers on Monday. Analysts offered differing views on the impact. CFG Advisory CEO Tilewa Adebajo described the market reaction as “a mere blip”, pointing to Nigeria’s recent removal from the FATF Grey List as a sign of strong fundamentals.
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Dr Musa Yusuf of the Centre for the Promotion of Private Enterprise warned that Trump’s threat could destabilize investor confidence, economy, and regional security. The situation remains fluid, and Nigeria’s economic stability could hinge on careful navigation of the geopolitical fallout and investor sentiment in the coming weeks.
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