Nigerian investors reacted with panic this week as President Donald Trump threatened a possible US military intervention and a cessation of aid over alleged killings of Christians.
The sell-off at the Nigerian Exchange Limited (NGX) wiped approximately ₦2.8 trillion ($6.9 billion) off the market, with trading volumes dropping by 15%. Analysts say the decline was driven by fear rather than company fundamentals, with investors wary of the potential impact on Nigeria’s economic and political stability.
Director of Research at Chapel Hill, Denham Tajudeen Ibrahim, stated that the comments were “a major threat to the Nigerian economy,” while brokers at NGX confirmed the stock market remains a barometer of national economic sentiment.
Violence in Nigeria, primarily in the North and Middle Belt, has been attributed to groups like Boko Haram and ISWAP, with thousands of Christians reportedly killed in 2025.
00:00Comment came to the investor, generally speaking, as a negative one and a major threat to the Nigerian economy and also to the financial markets.
00:22It was largely because of that, that the market turned red as investors were selling to take out profit in what we can consider as a response to the comments made by the U.S. president.
00:39Investors into African markets, particularly those that are in the U.S., are going to be a lot more careful in bringing in a new capital into Africa,
00:59particularly into Nigeria, considering that the results or the outcome of any military intervention by the U.S.
01:09may not be favorable to economic stability and political stability as well.
01:16The stock market is the barometer to measure the economy of the nation.
01:29And whatever that is happening affects the market.
01:33My understanding of what has happened in the market is that the market has plateaued and a number of persons thought they should take benefits.
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