Nigeria’s equities market suffered a sharp decline on Monday as investors lost about ₦244.9 billion following a wave of sell-offs triggered by U.S. President Donald Trump’s recent threat to sanction Nigeria over alleged religious persecution.
Data from the Nigerian Exchange (NGX) showed that the All-Share Index (ASI) fell from 154,126.46 points recorded on Friday to 153,739.11 points at the close of trading on Monday. Market capitalisation consequently dipped from ₦97.829 trillion to ₦97.582 trillion, reflecting a ₦244.9 billion loss in investors’ wealth.
Analysts attributed the downturn to heightened investor caution after Trump announced that Nigeria had been designated a “Country of Particular Concern (CPC)” and warned that Washington could take punitive actions unless the Nigerian government addressed alleged human rights violations and religious persecution.
The announcement sent a ripple of anxiety across global financial platforms, with investors anticipating possible economic sanctions or aid restrictions that could affect foreign inflows and trade relations. The development briefly unsettled Nigerian investors, who reacted with cautious sell-offs across key sectors, particularly banking, oil and gas, and consumer goods.
Market data showed that the breadth was negative, with 39 losers against 24 gainers. Major decliners included Honeywell Flour Mills Plc (−10.00%), Northern Nigeria Flour Mills Plc (−9.98%), and Unity Bank Plc (−9.92%). Conversely, top gainers were Union Dicon Salt Plc (+9.93%), Omatek Ventures Plc (+9.92%), and Deap Capital Management Plc (+9.90%).
Despite the loss, trading volume rose by 18% to 627.16 million units, valued at approximately ₦25.1 billion, indicating that investors remained active though risk-averse.
The naira also weakened slightly at the official window, sliding from ₦1,422.2 to ₦1,438 per U.S. dollar, reflecting mild pressure from speculative demand amid fears of renewed diplomatic tensions between Abuja and Washington.
Market watchers say the reaction is temporary, describing it as a “sentiment-driven correction” rather than a fundamental shift. Analysts at Cordros Research noted that despite the dip, year-to-date market returns remain robust at +49.37%, buoyed by strong corporate earnings and local participation.
However, the episode highlights how geopolitical risks—particularly from global powers—continue to influence investor behaviour in emerging markets like Nigeria. The Trump administration’s recent stance, coming just days after similar comments from U.S. evangelical groups, has reignited debates about Washington’s diplomatic posture in Africa and its underlying political motives.
Financial experts warn that prolonged diplomatic tension or the imposition of sanctions could affect Nigeria’s access to foreign capital and investor confidence, especially at a time when the government is striving to stabilise the economy, strengthen the naira, and attract international partnerships.
As trading resumes today, all eyes remain on the Tinubu administration’s response to Washington’s threat, which analysts say will determine whether the market stabilises or continues to wobble under geopolitical pressure.