Naira, Eurobonds Take Major Hit after Trump’s Military Threat to Nigeria

• The naira has recorded its strongest intraday fall against the US dollar after President Donald threats against Nigeria
• Data from the Nigerian foreign exchange market shows that the naira depreciated by 1.0% to close at N1,436, down from N1,421/$
• Also, Nigerian Eurobonds recorded their steepest fall in the bonds market on Monday, November 3, 2025

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nigeria’s currency and Eurobonds took a heavy hit following President Donald Trump’s military threat against the country.

On Monday, November 3, 2025, the naira depreciated by 1.0% against the U.S. dollar in the official foreign exchange market as investors reacted to escalating tensions.

Analysts say foreign portfolio investors are adopting a cautious approach, waiting to see if Washington’s threats will translate into action.

“Investors are watching keenly to see if the U.S. can go through with its threats. Right now, it is more of a cautious approach before any strong investment moves are made,” said economist and senior banker Janet Ogochukwu.

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Trump’s statement sparks financial volatility

President Trump had on Saturday, November 1, 2025, instructed the Pentagon to “prepare for possible action” and threatened to withdraw U.S. aid to Nigeria.

According to Central Bank of Nigeria (CBN) data, the naira lost ₦14.61 to close at ₦1,436.34 per dollar, compared to ₦1,421 the previous day.

Interestingly, in the parallel market, the local currency saw slight recovery, gaining 1.04% to ₦1,440 per dollar from ₦1,455 the previous day.

According to a BusinessDay report, Nigeria’s external reserves, however, remained steady at $43.19 billion as of October 31, 2025.

Eurobonds among worst hit in emerging markets

Nigeria’s dollar bonds were the worst performers among emerging markets, suffering sharp losses after the U.S. fallout over alleged Christian genocide.

Bloomberg reported that the 2047 Eurobond dropped as much as 0.6 cents on the dollar to 88.26 cents, before trimming some losses.

Across the maturity curve, Nigerian bonds accounted for all ten worst-performing assets in emerging markets on Monday, November 3.

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Tinubu rejects U.S. designation

President Bola Tinubu dismissed Trump’s decision to redesignate Nigeria as a Country of Particular Concern (CPC), insisting that his administration upholds the freedom of religion and belief for all Nigerians.

Experts warn of deeper economic fallout

The Centre for the Promotion of Private Enterprise (CPPE) warned that the U.S. threat could trigger widespread investor panic and market instability. In a policy brief signed by Dr. Muda Yusuf, the CPPE said:

“Although the statement appears to have been made on the basis of incomplete intelligence and misjudged assumptions, its source, the President of the United States , magnifies its potential impact.”

Naira Ggains N224 as GTBank, UBA slash dollar rates

Legit.ng earlier reported that The Nigerian currency, the naira, continued its strong performance, appreciating both in the official and parallel foreign exchange markets.

Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira has gained steadily for three consecutive days, reaching its strongest level since the Central Bank of Nigeria (CBN) launched the Electronic Foreign Exchange Matching System (EFEMS)

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Naira hits strongest level in 2025 as external reserves climb to $43.17 billion

At the close of trading on Thursday, October 30, 2025, the naira appreciated to N1,436.97 per dollar, up from N1,444.42 recorded a day earlier, a 0.52% daily gain.

Source: Legit.ng