Trump’s threat wreaking havoc on Nigerian stock market, Naira – Economists

This comes as the Nigerian Exchange Limited and the Naira have experienced a downturn since last week.

SOCIETY WATCH reports that NGX further continued its bearish trend on Monday after losing N2.8 trillion last week.

While NGX kept its bloodbath, the Naira also recorded losses across official and black markets on Monday to close at N1,437.29 per dollar.

Financial experts disclosed that this is directly linked to shaken investor confidence following Trump’s remarks.

Earlier, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, had predicted that Trump’s threat would weaken investors’ confidence in Nigeria.

Speaking, Mazi Okechukwu Unegbu, a former president of the Chartered Institute of Bankers of Nigeria (CIBN), and an economist and university don, Prof Godwin Oyedokun, explained to DAILY POST why Nigeria’s economy is bleeding due to Trump’s threat.

On his part, Unegbu said that the impact of US President Donald Trump’s comments on Nigeria was anticipated.

He explained that the pronouncement created fear among investors, leading to a decline in confidence and causing many to halt their investment plans on the Nigerian Exchange (NGX).

Unegbu acknowledged that Trump’s statement had ripple effects across all sectors of Nigeria’s economy but expressed doubt that the US leader would take any direct action against the country.

According to him, despite the current downturn, the period presents an opportunity for strategic investment.

He noted that previous gains in the foreign exchange market were not sustainable, stressing that Nigeria must increase local production to stabilise the naira.

He added that the decision to float the FX market would only yield positive results if the country reduces dependence on imports.

He further called for improved security to boost agricultural productivity and restore investor confidence in the Nigerian market.

According to him, “It is anticipated. When Trump made the statement, there was fear in the air, which has affected investors’ confidence. People have started to hold their investment plan for the NGX.

“This is a good time to invest in NGX anyway, from my experience as a financial analyst and stockbroker. In the aspect of the foreign exchange market, prior to now the gains are not real. Until Nigeria produces what is consumed.