Nigerian stock market slumped by N2.512 trillion in four days as investors reacted to President Donald Trump’s warning of possible U.S. military action.
Nigeria’s stock market tumbled sharply this week, losing N2.512 trillion in just four trading days amid widespread investor panic following comments by the U.S. President Donald Trump about possible military intervention over the killing of Christians by Islamist militants in the country.
The Nigerian Exchange (NGX) All-Share Index fell by 2.66% to close at 150,026.55 points on November 6, down from 154,126.46 points at the start of trading on Monday November 3, 2025. Market capitalization dropped to N95.317 trillion from N97.829 trillion.
Analysts attributed the sell-off to a mix of profit-taking, panic trading, and a broader global risk-off sentiment. While some investors rushed to exit positions, others viewed the downturn as a potential buying opportunity in fundamentally strong stocks.
Read Also: Bloomberg: Nigerian Naira Strengthens As Reserves Increases
Ambrose Omordion, chief operating officer at InvestData Consulting Limited, said investor anxiety was heightened by Trump’s social media statements. “Foreign investors are expected to react by taking profits in listed fundamental stocks,” he explained, though he advised that strong companies on the NGX still present value for long-term investors.
Similarly, Aruna Kebira, managing director of Globalview Capital Limited, pointed to profit-taking in key stocks such as Aradel Holdings Plc as a major driver of the decline. “If the market continues to slide, it could be linked to Trump’s threats,” he said, though he cautioned that it remains uncertain how such statements will ultimately affect market sentiment.
David Adonri, vice president of Highcap Securities Limited, offered a more tempered view, noting that the market remains largely domestically driven and resilient to external shocks. He suggested the recent fall reflects weak corporate earnings and underlying economic headwinds rather than political rhetoric. “Companies like Cadbury and Nigerian Breweries have shown only shaky recovery in their third-quarter results,” he said.
Dr. Muda Yusuf, director of the Centre for the Promotion of Private Enterprise (CPPE), warned that even verbal threats of military action by a global superpower can damage investor confidence. He said such statements risk deterring foreign direct investment, increasing capital flight, and elevating Nigeria’s risk profile.
The sell-off comes just weeks after the market gained N7.248 trillion in October 2025, driven by exchange rate stability, strong liquidity, and renewed investor optimism. For now, however, sentiment has shifted toward caution, as investors weigh geopolitical risks against Nigeria’s economic fundamentals.
Africa Daily News, New York
