Naira, Eurobonds Slide as Trump’s Military Threat Shakes Investor Confidence in Nigeria
Story: written by Myra November 4,2025
The naira weakened sharply on Monday, falling by 1.0 percent against the U.S. dollar in the official foreign exchange market following former U.S. President Donald Trump’s warning of possible military action against Nigeria.
In a post on his Truth Social platform over the weekend, Trump said he had directed the Pentagon to “prepare for possible action” and announced plans to suspend aid to Nigeria, citing ongoing religious violence in the country.
According to Central Bank of Nigeria (CBN) data, the naira lost ₦14.61, closing at ₦1,436.34 per dollar on the Nigerian Foreign Exchange Market (NFEM), down from ₦1,421.73 on Friday.
Interestingly, in the parallel (black) market, the naira slightly appreciated by ₦15, trading at ₦1,440 per dollar, compared to ₦1,455 recorded previously. Meanwhile, Nigeria’s foreign reserves stood at $43.19 billion as of October 31, 2025.
The shockwaves extended to the Eurobond market, where Nigeria’s dollar-denominated bonds suffered the steepest losses among emerging markets. Data from Bloomberg showed that the 2047 Eurobond fell as much as 0.6 cents to 88.26 cents on the dollar before recovering slightly.
President Bola Tinubu condemned Trump’s remarks, describing them as a misrepresentation of Nigeria’s ongoing efforts to uphold religious freedom and national security.
Bloomberg also noted that the naira hit an intraday low of ₦1,442.80, marking its worst single-day decline since June 2025 and ranking as the weakest currency among emerging markets on Monday.
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