Nigeria Not at War, Edun Tells Investors Amid Sokoto Operation
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has reassured investors that Nigeria’s recent joint security operation with the United States in Sokoto will not destabilise financial markets but is instead aimed at reinforcing economic confidence.
Edun emphasised that the Christmas Day operation was intelligence-led, targeting terrorist elements that threaten national stability and local communities.
The move comes after US President Donald Trump’s threat of military action in November 2025, which briefly rattled both the Nigerian Exchange Limited (NGX) and the naira.
“The operation in question was precise, intelligence-driven, and focused exclusively on terrorist threats. Far from weakening market confidence, such actions protect productive communities, safeguard citizens, and reinforce conditions required for sustainable growth,” Edun said.
“Security and economic stability are inseparable; every effort to protect Nigerians is inherently pro-growth and pro-investment.”
Strong Macroeconomic Fundamentals Support Confidence
Edun also highlighted Nigeria’s robust macroeconomic performance, noting GDP growth of 3.98 per cent in the third quarter of 2025, following a 4.23 per cent expansion in Q2. Inflation continues to decline, falling below 15 per cent, reflecting improved price stability and enhancing the investment climate.
“Our financial markets remain resilient, and domestic and international debt markets are functioning efficiently, supported by prudent fiscal management,” the minister said.
“Nigeria has received credit rating upgrades from Moody’s, Fitch, and Standard & Poor’s in 2025, clear endorsements of the strength of our reforms and the credibility of our economic direction.”
Edun stressed that President Bola Tinubu’s administration is focused on consolidating the gains of 2025, strengthening economic resilience, and building a sustainable, inclusive, and growth-oriented economy in 2026.
Market Reactions and Investor Confidence
The joint military strike briefly affected investor sentiment in November.
Following Trump’s announcement of targeted airstrikes, the naira slid from a peak of N1,421.73/$ to N1,436.34/$ in the official market and weakened to N1,455/$ in the parallel market.
The NGX All-Share Index fell 0.25 per cent, with a loss of N245.88bn in market capitalisation.
Bond market activity also reflected defensive positioning, with Nigerian Eurobond yields expanding five basis points to 7.70 per cent.
Analysts noted that the heightened geopolitical risk prompted temporary caution among investors, though Edun insisted these effects are short-lived.
Security Operations as Economic Stabiliser
Edun framed the joint operations as part of broader efforts to secure Nigeria’s productive zones and protect economic activity.
By eliminating terrorist threats, the government aims to prevent disruptions in commerce, investment, and trade, ultimately contributing to a stable business environment.
“Markets function best under peace and predictability,” Edun said.
“These targeted operations demonstrate the government’s commitment to safeguarding citizens and maintaining economic stability, sending a clear signal that Nigeria is open for business.”
Outlook for 2026
Looking forward, Edun affirmed that Nigeria’s policy focus remains on fiscal discipline, structural reforms, and targeted investments to reinforce growth.
The government continues to monitor security risks and coordinate with international partners to ensure that economic fundamentals remain robust.
“Investors should understand that Nigeria is not at war with itself or any external entity.
Actions taken to counter terrorism are measured, intelligence-led, and designed to protect life and livelihoods. These steps ultimately strengthen economic confidence and reinforce sustainable growth,” he concluded.
Analysts say Edun’s reassurances are likely to stabilise both domestic and foreign investor sentiment, particularly as markets reopen after the holiday period.
By maintaining transparency in policy and demonstrating coordination between security and economic strategies, Nigeria positions itself as a secure, reform-driven economy with predictable investment outcomes.
As the nation heads into 2026, investors are encouraged to focus on the broader fundamentals, including consistent GDP growth, declining inflation, and strong market performance — all underpinned by government actions designed to sustain stability and protect economic prosperity.
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