Nigeria’s Financial Markets React to Trump’s Military Threat Amid Religious Violence Concerns
Nigeria's dollar bonds and the naira tumbled following former U.S. President Donald Trump's threat of military action and aid suspension over religious violence. Trump's Truth Social post warned of potential U.S. intervention if attacks on Christians continue, triggering a selloff in Nigerian assets.
The 2047 sovereign bond led declines, dropping 0.6 cents to 88.26 cents on the dollar. The naira fell 1.2% to ₦1,442.80 against the dollar, marking its sharpest intraday drop since June. President Bola Tinubu rejected Trump's characterization, defending Nigeria's religious protections.
Market reactions underscore Nigeria's vulnerability to geopolitical risks despite its status as Africa's largest economy and OPEC producer. The selloff reflects investor concerns about potential disruptions to the country's fragile economic recovery.
