The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has assured local and foreign investors that Nigeria’s recent joint security operation with the United States in Sokoto State will not unsettle financial markets, but instead strengthen investor confidence and economic stability.
In a statement released on Sunday, Edun explained that the operation, which took place on Christmas Day, was based on intelligence and narrowly targeted terrorist groups posing threats to lives, communities, and economic activity.
The PUNCH recalls that U.S. President Donald Trump had earlier warned of possible military action against terrorists operating in Nigeria, a statement made in November that initially triggered negative reactions in Nigerian financial markets.
Following through on the warning, Trump announced on his Truth Social platform that U.S. forces carried out airstrikes against ISIS-linked militants in northwest Nigeria, accusing the group of targeting and killing civilians, particularly Christians. He described the strikes as decisive and vowed continued action if the attacks persisted.
The strikes have since been presented as part of a coordinated effort approved by the Nigerian government, with indications that further operations may follow.
Addressing concerns over the economic implications, Edun stressed that Nigeria is neither at war with itself nor with any foreign nation. He said the operation forms part of broader measures to secure the country and protect economic productivity.
According to him, the action was precise and limited to terrorist threats, and should be viewed as a stabilising force rather than a risk to markets. He noted that security and economic growth are closely linked, adding that protecting lives and productive communities ultimately supports investment and long-term development.
The finance minister also highlighted recent improvements in Nigeria’s macroeconomic indicators. He said the economy recorded 3.98 per cent GDP growth in the third quarter of 2025, following 4.23 per cent growth in the second quarter, while inflation has declined for the seventh consecutive period, dropping below 15 per cent.
Edun added that Nigeria’s financial markets remain resilient, with both domestic and international debt markets functioning steadily due to disciplined fiscal management. He noted that recent credit rating upgrades by Moody’s, Fitch, and Standard & Poor’s reflect growing confidence in the government’s economic reforms.
Quoting President Bola Ahmed Tinubu, Edun said the administration’s focus for 2026 is to consolidate gains made in 2025, strengthen economic resilience, and sustain inclusive growth. He assured investors that Nigeria’s policy direction remains clear, reform-driven, and firmly anchored on stability.
As financial markets reopen on Monday, December 29, 2025, the minister reiterated that Nigeria remains open for business, committed to peace, and focused on long-term prosperity.
The PUNCH further reported that Trump’s earlier threat in November had weighed on Nigerian assets. The naira weakened at both official and parallel markets, while the Nigerian Exchange Limited recorded a decline in its All-Share Index, wiping out ₦245.88 billion in market capitalisation.
Similarly, investor appetite for Nigerian Eurobonds softened, with yields rising as offshore investors adopted a cautious stance amid heightened geopolitical concerns.
