Nigerian assets slide after Trump threatens military strike
Nigeria’s dollar bonds took a beating on Monday after U.S. President Donald Trump threatened military action against the country over what he called the government’s failure to stop the killing of Christians by Islamist militants.
According to a report by Business Insider, the sell-off hit across maturities, with all 10 of the day’s worst-performing emerging-market bonds from Nigeria, according to Bloomberg data.
The notes maturing in 2047 fell the most, dropping 0.6 cents to 88.26 cents on the dollar as of 9:50 a.m. in Lagos.
In a post on Truth Social, Trump said he had instructed the Pentagon to “prepare for possible action” and warned of an immediate suspension of U.S. aid to Nigeria, Africa’s most populous nation and an OPEC member.
President Bola Tinubu rejected Trump’s comments, calling them a misrepresentation of Nigeria’s “consistent and sincere efforts to safeguard freedom of religion and belief for all Nigerians.”
For a country only beginning to breathe easier after years of tight monetary policy, the timing could hardly be worse. The Central Bank of Nigeria (CBN) had just begun easing, encouraged by a modest decline in inflation.
The United States remains one of Nigeria’s most important economic partners. Bilateral trade in goods and services reached around $13 billion in 2024, according to data from the Office of the U.S. Trade Representative.
Trump’s threat to suspend “aid and assistance” could ripple through multiple channels, from trade finance and energy exports to defence procurement and humanitarian programs.
There’s also concern that Nigeria could face restrictions under the African Growth and Opportunity Act (AGOA), which grants duty-free access to U.S. markets for African goods.
