Nigerian Stocks Lose ₦240bn as Investors Reprice Naira Assets After Trump’s Threat

Nigeria’s stock market kicked off the week on a negative note as investors sold off naira assets following a weekend threat by U.S. President Donald Trump. The market recorded a loss of over ₦247 billion on Monday, November 3, with the NGX All-Share Index dipping 0.25 percent—the first major reaction since Trump’s remarks over Nigeria’s security situation.

Market data showed that the NGX All-Share Index dropped from 154,126.46 points on Friday to 153,739.11 points, while total market capitalization fell from ₦97.829 trillion to ₦97.582 trillion. This decline also trimmed the market’s year-to-date return to +49.37 percent, signaling renewed caution among investors amid global political uncertainties.

Trump’s comments, made over the weekend, rattled investor confidence after he designated Nigeria as a “Country of Particular Concern” and threatened to cut off U.S. aid and launch a military invasion to “wipe out Islamic terrorists” allegedly committing genocide against Christians. The fiery statements sparked fears that foreign investors could reassess Nigeria’s risk profile, eroding gains from recent economic reforms.

Before Trump’s announcement, local analysts had projected a positive start to November’s trading week, buoyed by strong corporate earnings and increased liquidity. Research teams from Futureview, Coronation, and CardinalStone all expressed optimism for a rebound in equities, driven by bargain hunting and portfolio rebalancing ahead of year-end. However, the unexpected geopolitical shock quickly reversed that sentiment.

Financial experts warn that such political risks could deter foreign capital inflows and destabilize the naira’s fragile recovery. “Trump’s comments could undermine investor confidence and slow reform momentum,” said one Lagos-based analyst. As global markets digest the development, attention now shifts to how Nigeria’s government and the Central Bank will respond to maintain market stability and reassure investors.

source: Business day