Twenty four hours after the Government of the United States of America (USA) carried out targeted bombings on terrorists locations in Sokoto State, Nigeria, economic analysts have reacted differently to the incident with some believing that the situation will further boost investor confidence rather than impact the economy negatively.
The attack, which was specifically targeted at Islamic State forces, has attracted global reactions ranging from legal and sovereignty concerns. Reacting, some Nigerian analysts said the action could mark a turning point for investor confidence and economic recovery, particularly as insecurity has remained a major constraint on growth and capital in flows.
According to a top capital market operator, Mr. David Andorin, the intervention represents a significant development that could help unlock Nigeria’s suppressed economic potential. Andorin, who is the vice chairman of Highcap Securities Limited, lamented that for several years the economy of Nigeria had operated below capacity due to persistent security challenges such as terrorism and acts of sabotage that disrupt productive activities, weaken supply chains and discourage long-term investments.
According to him, the security challenge has been worsened by the activities of local collaborators who provide financing, intelligence and logistical support to terrorist groups. This internal dimension of the problem, he explained, has made it difficult for the Nigerian Armed Forces to decisively neutralize threats, despite sustained efforts and significant sacrifices.
He said the US action has sent a strong signal to both domestic and international investors that Nigeria is not isolated in its fight against insecurity. The involvement of the United States, he added, reinforced confidence in Nigeria’s security framework and improved country risk perception among portfolio investors, multinational corporations and development finance institutions.
He said: “Security is a fundamental pillar for economic expansion and market stability. “When investors see evidence of improved intelligence cooperation and decisive counter-terrorism actions, confidence naturally begins to return to both financial markets and real sector investments.”
He urged Nigerians to appreciate the US response, noting that sustained collaboration with international partners could accelerate economic recovery, deepen capital market participation and reposition Nigeria as a more attractive destination for medium to long-term investment.
Echoing similar views, Managing Director and Chief Executive Officer of Global View Capital Limited, Mr. Haruna Kebira, stressed that the action had no negative implications for the capital market, clarifying that Nigeria is not at war. According to him, the operation was a limited and targeted security intervention focused on specific terrorist locations, after which US forces disengages.
Kebira cautioned against misinterpreting the action as an escalation that could unsettle markets. Instead, he said it highlighted effective international security cooperation aimed at restoring safety and curbing threats that have weighed heavily on economic activity in recent years.
A decisive response against terrorism, he said, reassures investors that authorities and global partners are committed to protecting lives, assets and investments. According to Kebira, improved security conditions typically translate into better risk assessment, stronger investment flows and renewed confidence across equities, fixed income and the broader economy.
In this context, analysts believe the intervention could strengthen Nigeria’s investment appeal rather than unsettle the market, supporting a more stable outlook for growth and capital market performance. In the same development, although oil price at the international market spiked yesterday, an independent marketer, however, told New Telegraph that the price change could not be completely ascribed to the attack on terrorists, adding that the increase would be short-lived.
His view, however, differed from a report by Bloomberg, which said that the increase in price was due to the attack and the blockade in Venezuela. According to Bloomberg, yesterday global benchmark Brent traded above $62 a barrel, rising nearly tree per cent this week, while West Texas Intermediate was over $58.
The increases were viewed as the biggest weekly gain since late October. Another reason for the oil prices increase was that traders tracked a partial US blockade of crude shipments from Venezuela. But the Chief Executive Officer of the Major Energies Marketers Association of Nigeria, Mr. Clement Isong, in an interview with New Telegraph, said the hike in oil prices would be short-lived.
He stated that because of the involvement of the federal government in the decision making of the strike, Nigeria will not re- duce crude oil supply to the international market. He added that consequently price increases would not continue.
Isong said: “I do not anticipate that it (the strike) will have an immediate effect in the price of oil because since the government has said that they were part of the decision making for the strike, I don’t see Nigerians reacting or responding, and so I do not see the possibility of a reduction of supply of crude oil from Nigeria. “I don’t anticipate that it would affect the supply of crude to the world, and therefore not the price.”
He opined that traders merely anticipated a reaction from Nigeria leading to the current increases in crude prices. Isong said: “Those who speculate, who do not understand Nigeria, or before they read the Nige- rian government, they will speculate that there may be some reaction by the Nigerian government, or by the Nigerian people, which will lead to a reduction in supply. So sometimes you speculate before reality hits you, then you adjust and you go back.
“So it is true that some people who do not know Nigeria, or who had not read the full reports, from the Nigerian government, may have speculated that the supply of crude from Nigeria might go down. So that may be the reason why they adjusted their price.
“So it is not that Bloomberg was wrong, it is that the trailers reacted, and that the price adjusted accordingly, but after a few days, when they see that the supply has not been affected, the value of the product will go down, cost will go down.” Speaking in the same vein, a Chartered Forensic Accountant, Professor Richard Mayungbe, said the air strikes may not have significant negative effects on Nigeria’s economy.
Professor Mayungbe, who stated this in a chat with New Telegraph, on Friday, said that while the US action may trigger oil market price movements, especially given Nigeria’s position as a top oil producer and exporter, the volatility is likely to be temporary.
According to the financial expert, investors will take into consideration, the fact that the air strikes are targeted at wiping out Islamic State terrorists operating in the northern part of the country, which is a long distance away from the nation’s oil producing regions.
He said: “The air strikes may trigger price movements in the oil market. But this is likely to be brief. Also, Sokoto is not close to any area where crude oil is being drilled or exported. So I believe that while the US action may make some oil speculators to want to take positions, this will not last.” However, with key financial markets closed for the Boxing Day Public Holiday on Friday, it was not clear how investors were reacting to the US action.
