Nigeria’s financial markets took a hit on Monday as the naira weakened to ₦1,436.34 per dollar—down 1.03% from the previous session—while the Nigerian Exchange’s All-Share Index dropped 0.25% to 153,739.11 points.

The downturn followed U.S. President Donald Trump’s weekend threat of military action over alleged Christian persecution in Nigeria, sparking investor anxiety and renewed geopolitical risk.

The naira also slipped on the parallel market to ₦1,455 per dollar, driven by surging foreign exchange demand and fears over potential U.S. sanctions. Trump’s Truth Social post accused Nigeria of enabling “Islamic” attacks on Christians and directed the Pentagon to prepare intervention plans if violence continues. The post revived Nigeria’s “Country of Particular Concern” designation, potentially jeopardizing $1.2 billion in U.S. aid.

At the Nigerian Exchange (NGX), market capitalization fell by ₦245.88 billion to ₦97.58 trillion, trimming year-to-date gains to 49.37%. Key losers included:

• Aradel Holdings: -9.21%
• Access Corporation: -3.07%
• Honeywell Flour Mills: -10%
• Union Dicon: +9.93% (notable gainer)

Trading volume plunged 87.94% to 627.5 million units worth ₦25 billion, with UBA leading activity at 136.8 million units valued at ₦5.5 billion. Sector performance was mixed:

• Oil & Gas: -3.94%
• Commodities: -1.85%
• Insurance: -1.48%
• Banking: -0.22%
• Consumer Goods: +0.49%

Nigeria’s Eurobonds also underperformed, with the 2047 issue falling 0.6 cents to 88.26 cents, according to Bloomberg. While CFG Advisory’s Tilewa Adebajo described the reaction as a “temporary blip,” citing Nigeria’s recent exit from the FATF grey list and strong fundamentals, Centre for Private Enterprise CEO Dr. Musa Yusuf warned of “destabilizing” effects on investor confidence and urged diplomatic engagement over threats.

As markets digest the fallout, investors anticipate Central Bank of Nigeria (CBN) interventions and potential U.S.-Nigeria talks to calm nerves and restore stability.