The naira began November 2025 on a weak footing, depreciating from its year-high of ₦1,421.73 to ₦1,436.34 per dollar—a 1.03% drop in a single day, according to figures from the Central Bank of Nigeria.
On the parallel market, the local currency also slipped to ₦1,455 per dollar.
This downturn came amid heightened political tension, following U.S. President Donald Trump’s threat of possible military intervention in Nigeria over alleged persecution of Christians.
On October 31, Trump had listed Nigeria as a “country of particular concern” and, in a subsequent post on Truth Social, directed the U.S. Department of War to prepare for potential action if the killings continued.
At the Nigerian Exchange Limited, the market followed a bearish trend, with the All-Share Index falling by 0.25% to 153,739.11 points, trimming the year-to-date gain to 49.37%.
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Market capitalization also dropped by ₦245.88 billion to ₦97.58 trillion, largely due to selloffs in Aradel (-9.21%) and Access Corporation (-3.07%).
Investor sentiment remained weak, as 38 stocks declined while only 19 gained. Union Dicon (+9.93%) led the gainers, while Honeywell (-10.00%) topped the list of losers.
Trading activity slowed sharply, with total volume and value of trades down by 87.94% and 44.64%, respectively. United Bank for Africa dominated activity, accounting for over 136.8 million units valued at ₦5.5 billion.
Sector performance was mixed: Oil & Gas (-3.94%), Commodities (-1.85%), Insurance (-1.48%), and Banking (-0.22%) all posted losses, while Consumer Goods gained 0.49%. The Industrial sector closed flat.
The bond market also reflected bearish sentiment. Cowry Assets Management reported weaker demand for Nigeria’s Eurobonds, with yields rising by 5 basis points to 7.70%.
Bloomberg noted that Nigeria’s dollar bonds were among the worst performers in emerging markets, with the 2047 notes dropping as low as 0.6 cents on the dollar before slightly recovering.
Analysts expressed concern but cautioned against panic.
Tilewa Adebajo, CEO of CFG Advisory, described the development as “a temporary blip,” adding that Nigeria’s recent removal from the FATF Grey List could stabilize the market in the long run.
The CEO of the Centre for the Promotion of Private Enterprise, Dr. Musa Yusuf, however, warned that Trump’s remarks could dent investor confidence.
He criticized the threat as “unwarranted, counterproductive, and economically destabilizing,” urging diplomatic rather than coercive engagement.
“Such statements heighten risk perception and undermine confidence in Nigeria’s economy,” Yusuf noted. “The way forward lies in partnership, dialogue, and mutual respect for sovereignty.”
