A renowned economist, Dr. Paul Alaje has cautioned that recent statements by United States President Donald Trump threatening military action against Nigeria over alleged claims of Christian genocide, pose a serious threat to Nigeria’s gradually stabilising economy.

He spoke at a press briefing yesterday in Abuja, ahead of the 2025 Paul Alaje Colloquium (TPACOL – LOQUIUM) scheduled for later this month themed, ‘“Breaking the Cycle: How Nigeria Can Lead Africa from Poverty to Prosperity,” with Vice President Kashim Shettima, Prof. P.I.O Lumumba, Tope Fasua, Chief Alice Obasanjo as some of the speakers.

Alaje, who warned that the economic implications of such a threat should not be underestimated, noted that panic and negative perception could reverse the economic gains achieved in recent months.

While reflecting on former President Olusegun Obasanjo’s remarks as one of the speakers during the May 2024 TPACOLLOQUIUM highlighting security as Nigeria’s most urgent challenge, Alaje noted that the tension between Nigeria and the U.S. has elevated security concerns above economic issues.

According to him, the resulting uncertainty had already begun to affect the markets, with the Nigerian Stock Exchange (NGX) recording a 0.25% decline linked to the ongoing dip – lomatic strain.

He said: “No bomb has been thrown into Nigeria, no missile has been launched, but there is a rising panic. “In economics, perception is more important than reality.

When people panic, they move their money, and that affects inflation, reserves, and employment.