The Digest:
President Donald Trump's threat of military action and his designation of Nigeria as a "Country of Particular Concern" have sent shockwaves through the nation's economy, triggering a massive stock market sell-off and a sharp depreciation of the Naira. Financial experts confirm the direct link, citing a severe crisis of investor confidence that has wiped trillions of Naira from the NGX and destabilized the currency.
Key Points:
- Trump's threat has caused a "ripple of negative effects," shaking investor confidence.
- The Nigerian Exchange (NGX) lost over N2.8 trillion last week, continuing its bearish trend.
- The Naira depreciated, closing at N1,437.29 per dollar in the official market.
- Economist Prof. Godwin Oyedokun linked the plunge to fears of sanctions and capital flight.
- Former CIBN President Mazi Okechukwu Unegbu called the market reaction "anticipated."
- Experts urge the public to avoid panic-driven actions that could worsen volatility.
- They advise the government to pursue urgent diplomatic engagement and economic stabilization.
Sources: Daily Post, The Cable
