Trump Threat Jolts Markets As Stocks, Naira Slide Sharply

By FIDELUS ZWANSON

NIGERIA’S stock market slumped 1.19 percent on Wednesday — its steepest drop this month — as investors reacted to U.S. President Donald Trump’s threat to “enter Nigeria” to combat terrorists allegedly targeting Christians.

The selloff wiped about ₦1.3 trillion from equities, extending a three-day loss to over ₦2.1 trillion. The NGX All-Share Index fell to 150,573.87 points, while market capitalization dropped to ₦95.66 trillion.

Analysts say Trump’s comments rattled investor confidence, pushing risk premiums higher and reversing part of October’s 8 percent rally. The market is now down 2.15 percent in November, trimming year-to-date returns to 46.52 percent.

The naira also weakened across markets, closing at ₦1,438.49/$ at the official window and ₦1,460/$ at the parallel market. Despite steady reserves at $43.27 billion, foreign exchange inflows fell to $1.04 billion last week from $1.37 billion.

Analyst Ayokunle Olubunmi of Agusto & Co. said Trump’s remarks unsettled both currency and bond markets but expects stability to return soon, calling the reaction “temporary and typical of Trump’s rhetoric.”