Nigeria’s finance and economic stability remains intact, the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, assured investors on Sunday, following a joint security operation in Sokoto involving Nigerian and US forces. The intelligence-led operation, conducted on Christmas Day, targeted terrorist elements responsible for attacks in the northwest, and has sparked questions about its impact on markets.
Edun emphasised that the operation is not a sign of conflict or instability, but rather a step toward safeguarding citizens, protecting economic activity, and reinforcing investor confidence.
“The operation in question was precise, intelligence-led, and focused exclusively on terrorist elements that threaten innocent lives, national stability, and economic activity. Far from destabilising markets, such actions strengthen the foundations of peace and reinforce the conditions required for sustainable growth. Security and economic stability are inseparable; every effort to safeguard Nigerians is, by definition, pro-growth and pro-investment,” he said.
Markets and Macro Indicators Remain Resilient
The finance minister highlighted Nigeria’s strong macroeconomic performance. GDP grew by 3.98 per cent in Q3 2025, following a 4.23 per cent expansion in Q2, while inflation continued its decline for the seventh consecutive period, falling below 15 per cent—reflecting improving price stability.
Edun also noted the stability of domestic and international debt markets, credit rating upgrades from Moody’s, Fitch, and Standard & Poor’s, and the resilience of the Nigerian Exchange Limited (NGX), underscoring the effectiveness of fiscal prudence and policy reforms.
“Our financial markets remain resilient. Domestic and international debt markets are stable and functioning efficiently. Over the past year, Nigeria has received credit rating upgrades—clear endorsements of the strength of our reforms and the credibility of our economic direction,” Edun said.
Addressing the US Military Strike
The joint operation follows a US-led strike announced by former President Donald Trump on his Truth Social platform in November 2025, warning that ISIS terrorists operating in northwest Nigeria would face decisive action. Trump described the targets as perpetrators of repeated attacks on communities, particularly Christian populations, and confirmed the execution of “numerous perfect strikes.”
Financial markets initially reacted negatively to the announcement. On November 3, 2025, the naira slid from ₦1,421.73/$ to ₦1,436.34/$, a 1.03 per cent decline, while the parallel market saw the currency weaken further to ₦1,455/$. The NGX All-Share Index fell by 0.25 per cent, erasing ₦245.88bn in market capitalisation, and average yields on Nigerian Eurobonds increased to 7.70 per cent, reflecting defensive positioning among foreign investors.
Edun reassured that these early reactions were temporary and that the Sokoto operation will ultimately strengthen investor confidence by improving security and economic predictability.
Policy Clarity for 2026
The minister said the government’s overarching economic objective for 2026 is to consolidate gains from 2025, maintain fiscal discipline, and continue building a sustainable, inclusive, growth-oriented economy.
“The actions we take today—on security, reforms, and fiscal discipline—are aligned with that goal. As markets reopen, investors can be confident that Nigeria remains focused, reform-driven, and committed to stability. The fundamentals are strengthening, the policy direction is clear, and the resolve of this administration—to protect lives, secure prosperity, and grow the economy—is unwavering,” Edun noted.
Security, Stability, and Investment: Interlinked
Edun’s statement comes at a critical time for investors, businesses, and households, as geopolitical concerns and domestic security issues often directly impact economic activity. By framing security operations as pro-growth interventions, the government seeks to reinforce the narrative that peace and economic prosperity are inseparable, encouraging both domestic and foreign investment.
As Nigeria prepares for continued economic expansion in 2026, Edun emphasised that investors should view targeted counterterrorism operations not as disruptive shocks but as necessary measures to secure economic growth, protect communities, and stabilise markets.
Naija247news Staff ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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