Nigeria’s stock market recorded its steepest single-day drop in November after former U.S. President Donald Trump threatened potential military action against Nigeria. 

The NGX All-Share Index fell 1.19% on Wednesday, wiping billions off market capitalisation as jittery investors reacted to escalating geopolitical tensions.

The sell-off affected major sectors, including banking, energy, and industrial goods, as investors shifted funds toward dollar-denominated assets. Analysts say the shock was worsened by speculative fears that foreign investment inflows could stall if the U.S. proceeds with aggressive rhetoric.

Trump’s remarks, made during a campaign-style event in Texas, accused certain African governments of “sponsoring terrorism and corruption,” a statement widely condemned in Abuja. Nigeria’s foreign ministry has since demanded clarification from Washington, calling the comments “reckless and destabilising.”

Despite the turmoil, market analysts expect a rebound once clarity emerges. “Nigeria’s fundamentals remain intact; the sell-off is emotion-driven,” said a senior trader at a Lagos brokerage.

The Central Bank and Ministry of Finance have pledged to maintain liquidity buffers and ensure FX stability. Still, the event underscores how external politics can instantly impact Nigeria’s fragile market confidence.