As November 2025 kicks off, Nigeria's financial landscape is in turmoil,thanks to none other than U.S. President Donald Trump! His bombastic threats of potential military action against Nigeria over alleged religious persecution have sent shockwaves through the nation, causing the naira to plummet and equities to nosedive. The question everyone is asking: Is this the beginning of the end for Nigeria’s economy?
The Central Bank of Nigeria has confirmed a staggering drop in the naira, which tumbled from a 2025 high of N1,421.73/$ to a startling N1,436.34/$ in just one day,a drastic 1.03 percent decline. Meanwhile, the parallel market mirrored this disaster, with the currency trading at N1,455/$, as investor panic escalates!
Trump’s alarming comments, made over the weekend via his Truth Social platform, labeled Nigeria a “country of particular concern” and instructed the U.S. Department of War to brace for possible military intervention if the so-called “Christian genocide” continues. This inflammatory rhetoric has ignited a firestorm of debate and left many questioning the future of Africa's largest economy.
The financial fallout has been swift and severe. The Nigerian Exchange Limited saw bearish trading as the All-Share Index dipped by 0.25 percent, settling at 153,739.11 points and erasing nearly half of its year-to-date gains. Market capitalization plunged by N245.88 billion, leaving it at a mere N97.58 trillion.
Vicious sell-offs dominated the market, with Aradel Holdings crashing by 9.21 percent and Access Corporation down 3.07 percent. The mood was grim as 38 stocks fell compared to just 19 gainers. Union Dicon marginally triumphed as the top gainer at +9.93 percent, while Honeywell Flour Mills took a catastrophic hit, plunging by 10.00 percent.
Trading activity has ground to a halt, with total volume and value traded plummeting by shocking margins of 87.94 percent and 44.64 percent, respectively. United Bank for Africa was the lone warrior, dominating the session with an impressive 136.8 million units, but even that couldn’t save the day!
Sector performance bore the brunt of the chaos, with Oil & Gas down 3.94 percent, Commodities falling by 1.85 percent, and Banking barely holding on at -0.22 percent. Only the Consumer Goods sector managed to scrape by with a slight uptick of 0.49 percent.
In the bond market, despair continued as Cowry Assets Management revealed a waning appetite for Nigeria’s Eurobonds, with average yields creeping up by 5 basis points to 7.70 percent. Investors are clearly shying away due to overwhelming global risk aversion and a cloud of geopolitical uncertainty hanging over Nigeria.
In a shocking twist, Nigeria's dollar-denominated bonds became the laughing stock of emerging markets on Monday, with all ten notes floundering at the bottom. Bonds maturing in 2047 suffered the most, dropping a staggering 0.6 cents on the dollar to 88.26 cents,before attempting to recover some dignity later in the day.
Despite the turmoil, some analysts are trying to downplay the chaos. Tilewa Adebajo, CEO of CFG Advisory, nonsensically claims that this situation is just a “temporary blip.” Really? He seems to overlook the fact that the market's current state is a direct consequence of Trump’s reckless rhetoric!
On the other hand, Dr. Musa Yusuf, CEO of the Centre for the Promotion of Private Enterprise, is more realistic, stating that Trump’s threats could completely obliterate investor confidence. His remarks are not only “unwarranted” but also “economically destabilising,” sending shockwaves through the market.
As Nigeria navigates this storm, the real question remains: how will the government respond? The stakes are high, and the future of the economy hangs in the balance. Will they opt for diplomacy, or will they face the disastrous consequences of military action? One thing is for sure,investors are on edge, and the world is watching!
Stay tuned as we continue to monitor this unfolding crisis and its implications for Nigeria and beyond!
