The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has sought to calm investor concerns, stating that Nigeria’s recent joint security operation with the United States in Sokoto poses no threat to market stability and should instead bolster economic confidence.
In a statement released on Sunday, Edun explained that the Christmas Day operation was intelligence-driven and narrowly focused on terrorist groups posing a danger to national security and local communities.
This followed earlier reports that United States President Donald Trump had acted on a threat, first issued in November, to carry out military action against terrorists in Nigeria—a development that had previously unsettled financial markets.
Posting on his Truth Social platform, Trump said, “Tonight, at my direction as Commander in Chief, the United States launched a powerful and deadly strike against ISIS terrorist scum in northwest Nigeria, who have been targeting and viciously killing, primarily, innocent Christians, at levels not seen for many years, and even centuries.
‘I have previously warned these terrorists that if they did not stop the slaughtering of Christians, there would be hell to pay, and tonight, there was. The Department of War executed numerous perfect strikes, as only the United States is capable of doing.
“Under my leadership, our country will not allow radical Islamic terrorism to prosper. May God bless our military, and Merry Christmas to all, including the dead terrorists, of which there will be many more if their slaughter of Christians continues.”
Subsequently, the military action was described as an operation authorised by the Federal Government, with indications that further strikes could follow.
Edun, in his Sunday statement, stressed that Nigeria is neither at war internally nor with any foreign nation, noting that the security action forms part of broader efforts to protect citizens and sustain economic activity.
“The operation in question was precise, intelligence-led, and focused exclusively on terrorist elements that threaten innocent lives, national stability, and economic activity. Far from destabilising markets or weakening confidence, such actions strengthen the foundations of peace, protect productive communities, and reinforce the conditions required for sustainable growth. Security and economic stability are inseparable; every effort to safeguard Nigerians is, by definition, pro-growth and pro-investment,” he said.
The finance minister also highlighted Nigeria’s improving macroeconomic indicators, pointing to GDP growth of 3.98 per cent in the third quarter of 2025, following a 4.23 per cent increase in the second quarter. He added that inflation has eased for the seventh straight period, dropping below 15 per cent and signalling better price stability.
He stated, “Our financial markets remain resilient. Domestic and international debt markets are stable and functioning efficiently, supported by prudent fiscal management. Over the past year, Nigeria has received credit rating upgrades from Moody’s, Fitch, and Standard & Poor’s—clear, independent endorsements of the strength of our reforms and the credibility of our economic direction. We have maintained fiscal discipline, prioritised efficiency, and protected macroeconomic stability—demonstrating resilience in the face of external shocks.
“As President Bola Tinubu noted in his address last week, our overarching objective for 2026 is to consolidate the gains of 2025, strengthen Nigeria’s economic resilience, and continue building a sustainable, inclusive, and growth-oriented economy.
“The actions we take today—on security, reforms, and fiscal discipline—are aligned with that goal. As markets reopen on Monday, 29 December 2025, investors can be confident that Nigeria remains focused, reform-driven, and committed to stability. The fundamentals are strengthening, the policy direction is clear, and the resolve of this administration—to protect lives, secure prosperity, and grow the economy—is unwavering.”
As trading resumes on Monday, Edun reiterated that Nigeria remains open to investment, grounded in peace and firmly oriented toward long-term growth.
Reports indicate that when Trump initially issued his military threat in early November, both the naira and the Nigerian Exchange responded negatively. The naira fell from its 2025 high of N1,421.73 per dollar to N1,436.34 per dollar—a decline of 1.03 per cent, or N14.61, on November 3, 2025. In the parallel market, the currency also weakened to N1,455.00 per dollar.
On the same day, the Nigerian Exchange Limited’s All-Share Index dropped by 0.25 per cent to close at 153,739.11 points, reducing year-to-date gains to 49.37 per cent. The downturn wiped N245.88bn off market capitalisation.
Meanwhile, in the bond market, Cowry Assets Management reported reduced demand for Nigerian Eurobonds, with average yields rising by five basis points to 7.70 per cent. This reflected cautious sentiment and defensive positioning among offshore investors, influenced by broader macroeconomic challenges and heightened geopolitical risk across emerging markets.