The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has assured investors that the country’s recent joint security operation with the United States in Sokoto will not destabilise markets, but rather reinforce economic confidence.
Speaking in a statement on Sunday, Edun emphasised that the operation, conducted on Christmas Day, was intelligence-led and targeted solely at terrorist elements threatening national stability and communities.
The PUNCH reports that US President Donald Trump had made good on his threat of military action against terrorists in Nigeria — a threat he made in November that financial markets reacted to negatively.
Trump, on his Truth Social platform, had 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.”
The military strikes have since been framed as an operation approved by the Federal Government, with more strikes likely.
In his statement on Sunday, Edun stressed that Nigeria is not at war with itself or any other country, and that the action is part of ongoing efforts to safeguard citizens and protect 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 underscored Nigeria’s solid macroeconomic performance, noting GDP growth of 3.98 per cent in the third quarter of 2025, following a 4.23 per cent expansion in Q2. Inflation has continued its downward trend for the seventh consecutive period, falling below 15 per cent reflecting improving price stability.
He maintained, “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 markets reopen on Monday, Edun reassured investors that Nigeria remains open for business, anchored in peace, and firmly focused on the future.
The PUNCH reports that when Trump issued the threat of a military strike in early November, both the naira and the Nigerian Exchange reacted bearishly. The naira slid from its 2025 peak of N1,421.73/$ to N1,436.34/$ — a sharp 1.03 per cent decline, or N14.61, on November 3, 2025. At the parallel market, the naira also weakened to N1,455.00/$.
On the same day, the Nigerian Exchange Limited’s All-Share Index contracted by 0.25 per cent to settle at 153,739.11 points, bringing year-to-date gains to 49.37 per cent. The trading trend also led to a loss of N245.88bn in market capitalisation.
At the bond market, Cowry Assets Management indicated that appetite for Nigerian Eurobonds weakened, with average yields expanding by five basis points to 7.70 per cent. This was indicative of bearish sentiment and defensive positioning in the offshore debt space, driven by prevailing macroeconomic headwinds and heightened geopolitical risk aversion across emerging market credit.
