Nigeria’s currency and Eurobond markets took a hit on Monday following threats issued by former U.S. President Donald Trump, triggering a selloff across emerging market assets linked to the country.
The News Chronicle learned that Trump, in a post on his Truth Social platform over the weekend, claimed to have directed the Pentagon to “prepare for possible action” against Nigeria, warning that U.S. aid to the country could be suspended if the government fails to address religious violence and protect Christians.
The statement sent shockwaves through global financial circles, with investors reacting swiftly to the perceived geopolitical risk.
Official data from the Central Bank of Nigeria (CBN) revealed that the naira weakened by 1.0 percent against the U.S. dollar, closing at N1,436.34 per dollar on the Nigerian Foreign Exchange Market (NFEM), compared to N1,421.73 recorded on Friday.
Interestingly, the parallel market painted a different picture, as the naira strengthened by 1.04 percent to N1,440 per dollar, gaining N15 from N1,455 previously quoted.
According to the most recent CBN data, Nigeria’s foreign reserves increased slightly to $43.19 billion as of October 31, 2025. Still, the general attitude in the world’s markets was negative.
Among emerging countries, Nigerian Eurobonds experienced their biggest daily losses; ten of the worst-performing bonds came from Nigeria, according to Bloomberg data. Before somewhat regaining, the 2047 Eurobond plunged 0.6 cents on the dollar to 88.26 cents.
President Bola Tinubu rejected Trump’s remarks as irresponsible and unsupported in response to the events, noting that they run counter to Nigeria’s ongoing attempts to protect religious freedom and national stability.
According to market analysts, the incident highlights the tenuous faith of foreign investors in the economy of Nigeria given its political sensitivity and currency volatility.
Traders observed that the naira also hit an intraday low of N1,442.80 per dollar, its most significant single-day loss since June, therefore making it the weakest-performing emerging-market currency of the day.
The show shows how quickly external political declarations may destabilize Nigeria’s financial markets even as the government tries to preserve investor confidence and macroeconomic stability.
