US President Donald Trump's threat to take military action against Nigeria and designation of the country as a "Country of Particular Concern" (CPC) has had a significant impact on Nigeria's economy. The Nigerian Exchange (NGX) has lost over ₦2.8 trillion, and the naira has depreciated to ₦1,437.29 per dollar.
Economists attribute this downturn to shaken investor confidence and fears of potential sanctions or capital flight. Mazi Okechukwu Unegbu, former President of the Chartered Institute of Bankers of Nigeria, notes that Trump's comments created uncertainty, forcing investors to pause or abandon plans.
Prof. Godwin Oyedokun warns against panic-driven responses, emphasizing the need for diplomatic engagement and strategic policy adjustments. The CPC designation typically relates to concerns around governance, security, or human rights, triggering market tension and investor anxiety ¹ ² ³.
Experts urge the government to address insecurity, boost local production, and diversify the economy to stabilize the naira and restore market trust.
