Finance Minister Reassures Markets After Christmas Day US–Nigeria Strikes in Sokoto
Nigeria’s Federal Government has issued a fresh reassurance to investors and global partners following the Christmas Day joint security operation involving United States forces in Sokoto, insisting that the action will reinforce economic confidence rather than destabilise financial markets.
The reassurance was given by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, amid renewed scrutiny of Nigeria’s security and economic outlook.
FG: Strike Was Intelligence-Led, Not a Signal of War
In a statement issued on Sunday, Edun stressed that the operation was precise, intelligence-driven, and targeted solely at terrorist elements threatening lives, national stability, and economic activity.
He said Nigeria is not at war with itself or any other country, framing the action as part of a broader counterterrorism effort conducted with trusted international partners.
Trump’s Threat and Follow-Through
The update follows confirmation that Donald Trump had authorised the strikes after earlier warnings issued in November. Trump publicly described the operation as “powerful and deadly,” saying it targeted ISIS elements in northwest Nigeria accused of attacking civilians.
The strikes have since been framed as approved by the Nigerian government, with security sources suggesting further operations may follow.
Markets Remember November Shock
Edun’s reassurance comes against the backdrop of market turbulence triggered in November, when Trump’s initial threat of military action rattled Nigerian assets.
Following the warning, the naira weakened sharply, sliding from ₦1,421.73/$ to ₦1,436.34/$, while the parallel market also depreciated. The Nigerian Exchange Limited recorded a ₦245.88bn loss in market capitalisation, as investors priced in heightened geopolitical risk.
Eurobond yields also rose, reflecting defensive positioning by offshore investors.
FG: Security Actions Are Pro-Investment
Edun countered fears of renewed volatility, arguing that decisive security actions strengthen the foundations of peace and economic growth rather than undermine them.
According to him, protecting communities, infrastructure, and productive activity is inseparable from sustaining investor confidence.
Strong Economic Signals Cited
The finance minister highlighted Nigeria’s recent macroeconomic performance to support the government’s position. He noted GDP growth of 3.98% in Q3 2025, following 4.23% growth in Q2, with expectations of further improvement.
Inflation, he said, has declined for seven consecutive periods, falling below 15%, while domestic and international debt markets remain stable.
Credit Ratings and Fiscal Discipline
Edun also pointed to credit rating upgrades from Moody’s, Fitch Ratings, and Standard & Poor’s as independent validation of Nigeria’s reform trajectory.
He said fiscal discipline, efficiency, and macroeconomic stability have been maintained despite external shocks.
Tinubu’s 2026 Economic Agenda
Referencing Bola Tinubu, Edun said the administration’s focus for 2026 is to consolidate gains made in 2025, strengthen resilience, and build a sustainable, inclusive growth model.
He assured investors that Nigeria remains open for business, reform-driven, and committed to stability as markets reopened on Monday, December 29, 2025.
Why This Matters
With security operations escalating and memories of November’s market jitters still fresh, the government is clearly moving to control the narrative — signalling that counterterrorism actions are not a prelude to instability, but a pillar of long-term economic confidence.
