The Centre for the Promotion of Private Enterprise has expressed concern that a recent threat by US President Donald Trump of possible military action in Nigeria could have far-reaching implications for the country’s economy. The threat, made in response to alleged Christian genocide, has sparked mixed reactions from Nigerians, including the presidency.
According to Dr Muda Yusuf, Chief Executive Officer of the Centre, Trump’s comment risks undermining Nigeria’s image as a stable investment destination, which could lead to a decline in foreign direct investment inflows. The statement is also likely to trigger capital flight from portfolio and equity investors, as well as a decline in venture capital and startup funding.
The Centre warns that market volatility could intensify as investors reassess Nigeria’s risk profile, leading to falling stock market valuations. The US President’s threat of military intervention is seen as unwarranted, counterproductive, and economically destabilizing, failing to reflect the complexity of Nigeria’s internal security dynamics.
The Centre emphasizes that such statements send unsettling signals to investors, heighten risk perception, and undermine confidence in Nigeria’s economy. While acknowledging the need for Nigeria to strengthen its internal security architecture and governance, the Centre advocates for cooperative external engagement rather than coercive measures.
Unilateral military action, the Centre notes, would destabilize Nigeria’s economy, threaten regional stability, and aggravate humanitarian conditions. Instead, the Centre recommends a constructive path forward through diplomacy, partnership, and shared commitment to peace, development, and mutual respect for sovereignty.
The Centre’s concerns highlight the potential economic consequences of Trump’s threat, which could have significant implications for Nigeria’s investment climate and economic stability. As the situation continues to unfold, it remains to be seen how the Nigerian government will respond to the US President’s threat and what measures will be taken to address the underlying issues.
