Nigeria’s economy has been shaken over the past ten days following comments from U.S. President Donald Trump, who labelled the country a Country of Particular Concern and hinted at possible military action. Economists say the statement has scared investors, leading to panic in the financial markets.
The Nigerian Stock Exchange has suffered heavy losses, dropping by over N2.8 trillion in value, while the naira has continued to fall sharply across both official and black-market channels, closing at approximately ₦1,437 per dollar. Experts say the sudden decline is a direct reaction to weakened investor confidence triggered by Trump’s warning.
Dr Muda Yusuf previously warned that foreign investors would pull back if global confidence in Nigeria dropped — and recent events appear to confirm his prediction. Many investors are now delaying decisions, waiting to see how the situation unfolds.
Speaking on the issue, financial analyst Mazi Okechukwu Unegbu said the panic was expected. He noted that Trump’s comments caused fear in the market and made investors pause their activities. However, he also argued that the current dip offers smart investors a chance to buy undervalued stocks. He further stressed the importance of boosting local production and securing the country to protect the naira.
Economist and lecturer Prof. Godwin Oyedokun also explained that the market downturn shows how global diplomacy affects investor behaviour. He warned that the CPC label could bring diplomatic pressure, scare investors, and raise concerns about sanctions. But he advised Nigerians not to panic or rush to withdraw funds or buy forex out of fear, saying such actions could worsen the crisis.
Oyedokun believes the government must act quickly: open diplomatic talks with the U.S., address governance and human-rights concerns, and take steps to stabilise the economy. He noted that Nigeria can still turn the situation into a positive by strengthening reforms and showing commitment to good governance.
Both experts agree that while the situation is tough, panic will only make it worse. They urged citizens to stay informed, avoid emotional economic decisions, and support efforts to rebuild confidence in the economy.
