Nigerian Stocks Plunge ₦247 Billion, Naira Slides as Trump’s Military Threat RATTLES Investors

Nigerian financial markets were thrown into turmoil on Monday, November 3, 2025, as investors reacted with fear and uncertainty to the weekend threat of possible U.S. military action against Nigeria made by President Donald Trump.

The market sell-off was immediate and sharp, confirming fears that the diplomatic crisis could derail the economic stabilization efforts of the current administration.

At the Nigerian Exchange (NGX) Limited, the benchmark All-Share Index (ASI) depreciated by 0.25 per cent, wiping out approximately ₦247 Billion from the market capitalisation. This single-day loss significantly impacted the market’s stellar year-to-date returns as investors rushed to reprice the risk associated with Nigerian assets.

The foreign exchange market was equally rattled. Data from the Central Bank of Nigeria (CBN) showed that the Naira lost ground in the official market, depreciating by 1.0 per cent. The local currency closed at ₦1,436.34 per dollar at the Nigerian Foreign Exchange Market (NFEM), representing a loss of ₦14.61 from its Friday close of ₦1,421.73.

The global bond market also registered a strong negative sentiment. Nigeria’s Eurobonds saw massive sell-offs across all 12 dollar bonds, with the FGN Eurobond 2047 taking the steepest hit as its price dropped by up to 0.6 cents on the dollar.

Erosion of Reform Gains

Analysts from the Centre for the Promotion of Private Enterprise (CPPE) warned that the mere threat of military action by a global superpower risks undermining the nation’s reputation as a stable and viable investment destination.

“The uncertainty and fear would lead investors to adopt a wait-and-see posture, delaying or cancelling major projects,” stated a financial policy analyst. The consensus among market observers is that the geopolitical escalation will raise the risk premium on Nigerian assets, complicate the Central Bank’s efforts to stabilize the Naira, and threaten the recent surge in Foreign Portfolio Investment (FPI) that followed President Bola Tinubu’s sweeping economic reforms.

Despite the severe reaction in the official markets, the parallel foreign exchange market showed relative resilience, maintaining stability, suggesting that traders are still waiting to see if the threat will translate into real action.