Nigeria’s financial markets opened November on a shaky note as both the naira and equities fell sharply following remarks by United States President Donald Trump, who threatened potential military action against Nigeria over alleged religious persecution.
Fresh data from the Central Bank of Nigeria (CBN) showed that the naira, which recently peaked at N1,421.73 per dollar, weakened to N1,436.34/$ on Monday — a 1.03 per cent decline, representing a N14.61 drop in a single day.
The pressure was also felt at the parallel market, where the local currency slid further to N1,455/$, reflecting growing investor unease and increased foreign exchange demand amid heightened geopolitical tension.
The selloff came after a weekend of controversy sparked by President Trump’s comments on his Truth Social platform, where he redesignated Nigeria as a “Country of Particular Concern” and ordered the U.S. Department of War to “prepare for possible action” if alleged killings of Christians continued.
Trump’s declaration, which cited what he described as a “Christian genocide” in Nigeria, triggered global debate and raised fears about the diplomatic and economic fallout for Africa’s largest economy.
Market analysts say the remarks unsettled investors, prompting speculative demand for foreign currencies and increased selling pressure on Nigerian stocks.
“The market is reacting to uncertainty. Any mention of sanctions or military threats from the U.S. sends a negative signal to investors,” one Lagos-based analyst told Journalists on condition of anonymity.
The U.S. leader’s comments have already drawn sharp criticism from Nigerian political figures and diplomats, who describe the allegations as exaggerated and harmful to bilateral relations.
Observers warn that prolonged diplomatic tension could further weigh on the naira and dampen foreign investment sentiment at a time when the economy is struggling with inflation, insecurity, and fiscal strain.
