Trump’s Threat, CPC Designation Cripple Nigerian Stock Market and Naira – Economists

Financial experts say Nigeria’s economy has taken a hit following U.S. President Donald Trump’s designation of the country as a “Country of Particular Concern” (CPC) and his recent threat of possible military action.

The announcement, made about ten days ago, has sparked widespread uncertainty, driving panic among investors and weakening both the Nigerian Exchange Limited (NGX) and the Naira.

The NGX extended its bearish run on Monday, shedding another N2.8 trillion after last week’s losses. Meanwhile, the Naira slumped to ₦1,437.29 per dollar across both official and black-market rates.

Economists and analysts attribute the market turbulence to shaken investor confidence triggered by Trump’s comments.

Mazi Okechukwu Unegbu, a former president of the Chartered Institute of Bankers of Nigeria (CIBN), said the impact was “anticipated,” noting that investors became jittery after the U.S. leader’s remarks.

“When Trump made the statement, there was fear in the air, which affected investor confidence. Many have begun to hold back their investment plans on the NGX,” Unegbu explained.

He added that while Trump’s comments rattled markets, the current downturn could also present an opportunity for strategic investors.

“This is actually a good time to invest. The foreign exchange gains we saw earlier were not sustainable. For Nigeria to stabilise the Naira, we must produce what we consume,” he said, stressing that local production and improved security are key to rebuilding confidence.

Economist and university lecturer, Prof. Godwin Oyedokun, also linked the economic slide to investor anxiety over potential diplomatic and trade consequences following Nigeria’s CPC designation.

“The sudden depreciation of the Naira and a plunge of over ₦2.8 trillion in the equities market reflect shaken investor confidence, heightened geopolitical risk, and fears of sanctions or capital flight,” he said.

Oyedokun explained that international diplomacy and economic stability are deeply connected, warning that strained ties with global powers often trigger market reactions.

He advised Nigerians to stay calm and avoid panic-driven decisions such as speculative forex buying or hurried withdrawals.

“Confidence drives markets as much as capital. The government must engage diplomatically with the U.S. to clarify concerns behind the CPC label, while maintaining policy transparency and economic stability,” Oyedokun added.

The experts urged the federal government to focus on rebuilding investor trust, promoting local productivity, and strengthening governance and human rights protections to enhance Nigeria’s global image and economic resilience.