Naira, Eurobonds down after Trump’s threat to Nigeria

The naira on Monday depreciated by 1.0 percent against the dollar in the official foreign exchange (FX) market following threats by former U.S. President Donald Trump against Nigeria.

In a post on Truth Social on Saturday, Trump said he had instructed the Pentagon “to prepare for possible action” and threatened an immediate cutoff of aid to Nigeria, an OPEC member and Africa’s most populous nation.

Data from the Central Bank of Nigeria (CBN) showed that the naira lost N14.61 as the dollar closed at N1,436.34 at the Nigerian Foreign Exchange Market (NFEM), compared to N1,421.73 per dollar quoted on Friday.

However, at the parallel market, popularly called the black market, the naira appreciated by 1.04 percent to close at N1,440 per dollar, gaining N15 from N1,455 recorded on Friday.

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External reserves rose to $43.19 billion as of the last update on October 31, 2025, according to data from the CBN.

Nigeria’s dollar bonds recorded the steepest losses among emerging markets on Monday after Trump’s statement threatening possible military action if the government fails to stop the killings of Christians by Islamist militants. Nigerian dollar bonds declined across the maturity curve, accounting for all ten of the worst performers in emerging markets as of 10:45 a.m. in Lagos, according to data compiled by Bloomberg. The 2047 notes fell the most, dropping as much as 0.6 cents on the dollar to 88.26 cents before paring the losses.

Reacting to the development, President Bola Tinubu rejected Trump’s comments, saying they disregarded “the consistent and sincere efforts of the government to safeguard freedom of religion and beliefs for all Nigerians.”

Bloomberg report stated that Nigeria’s currency also recorded an intraday drop of 1.2 percent to N1,442.80 per dollar, its biggest one-day loss since June, making it the weakest among emerging-market currencies on Monday.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.