Investors’ confidence in Nigeria’s stock market wavered last week amid heightened concerns over market volatility, macroeconomic instability, and renewed foreign policy tensions following comments by former United States President, Donald Trump.
Market analysts attributed the cautious sentiment and profit-taking activities across several sectors to deepening uncertainties surrounding Nigeria’s global image and domestic economic environment.
Trump had recently designated Nigeria as a “Country of Particular Concern” over alleged killings of Christians, a move that rattled international observers and raised fears of strained diplomatic relations. He further warned that the United States might consider military intervention if the situation persisted.
The former president’s remarks, coupled with existing economic headwinds, appeared to have unsettled both local and foreign investors who are already grappling with inflationary pressures, fluctuating exchange rates, and unpredictable government policies.
A capital market analyst, Mr. Tunde Adediran, told PLATFORM TIMES that the development “sent a strong negative signal to the investment community,” particularly those with exposure to Nigeria’s equities and debt instruments.
“Whenever a major global figure makes such a strong statement about a country’s internal situation, investors naturally become nervous. It adds to the perception of political and security risk,” Adediran said.
Trading data from the Nigerian Exchange (NGX) showed mild sell-offs in key sectors including banking, consumer goods, and industrials, as investors sought safer assets amid the geopolitical uncertainty.
Another economist, Mrs. Yinka Ajayi, explained that while market volatility is common, the convergence of external pressures—especially those tied to Nigeria’s international image—could further weaken foreign portfolio inflows.
“This kind of rhetoric, even if not immediately actionable, influences perception. In investment, perception is almost as powerful as reality,” she added.
As the federal government continues efforts to restore investor confidence and stabilize the economy, experts warn that sustained negative international attention could complicate Nigeria’s bid to attract long-term capital and partnerships.
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