NIGERIA’s stock market suffered a severe setback during the first week of November, with equities shedding a staggering N2.8 trillion in market value as heightened geopolitical tension rattled investor confidence.
News Point Nigeria reports that the sustained market downturn followed United States President Donald Trump’s escalating threats of a possible military operation in Nigeria, over what he described as government inaction on alleged religious persecution.
The U.S. leader, who last week designated Nigeria as a “Country of Particular Concern,” warned that Washington would cut off all aid and might intervene militarily, if the Nigerian government failed to address alleged killings of Christians.
The fiery remarks immediately triggered jitters across global financial circles while prompting foreign and domestic investors to reassess Nigeria’s risk profile.
The Nigerian Exchange Limited (NGX) recorded losses across all five trading sessions from Monday, November 3 to Friday, November 7.
On Monday, the first trading day after Trump’s threat — the market capitalization plunged from N97.829 trillion to N97.582 trillion, wiping out N244.9 billion in a single day.
The NGX All-Share Index (ASI) also dipped 0.25% to close at 153,739.11 points, pushing investor year-to-date returns down to +49.37%.
Sector-wide dumping hit banking, oil & gas, industrials and consumer goods, reversing October’s gains driven by government reforms and capital inflows.
Analysts say the sharp reaction illustrates how political tension can trigger a rapid reversal of bullish momentum.
“The President Trump’s remarks created fresh geopolitical uncertainty,” said a Lagos-based investment strategist.
“Foreign funds became cautious, and local investors reacted emotionally.”
The Exchange recorded a significant drop in trading activity compared to the previous week:
3.575 billion shares worth N107.011 billion traded (vs 7.479bn shares last week)
146,429 deals recorded (down from 159,487)
Breakdown by sector:
Financial Services led with 2.946bn shares valued at N65.904bn
Services Sector followed with 147.3m shares
Consumer Goods placed third with 147.31m shares
A market analyst, Ifeoma Richards told News Point Nigeria that geopolitical pressure, soaring inflation, rising borrowing costs and broader global uncertainties could continue to weigh on investor sentiment.
“The risk premium on Nigerian assets has increased materially,” another analyst, Lekan Bamidele said. “The market will remain fragile until clarity returns to diplomatic relations.”