The Nigerian government has downplayed the impact of US President Donald Trump’s comments on the country’s capital market, stating that recent sell-offs were part of normal market cycles rather than a reaction to external political tensions. According to Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, the fluctuations in the Nigerian Exchange (NGX) were driven by investors taking profits after extended periods of gains, leading to momentary declines.
Oyedele explained that the NGX has been one of the best-performing markets in the world, with returns of around 40% and 50% in local and dollar terms, respectively. He noted that it is natural for investors to sell off after a long run of gains, which should not be misinterpreted as panic reactions. The recent dip in the market, he emphasized, is a normal market cycle where prices go up and down.
The comments from Oyedele come after President Trump sparked controversy with his statements on Nigeria, ordering the Pentagon to map out a possible plan of attack in response to alleged killings of Christians. Trump’s threat has been met with widespread reactions from political and diplomatic circles, with the Nigerian government engaging in talks with US authorities to address the issue.
The Federal Government has confirmed that diplomatic channels are open, and discussions are underway to resolve the tense relationship between the two countries. The Minister of Information and National Orientation, Mohammed Idris, stated that the US authorities are gaining a better understanding of the situation, and the government believes that most of the information is a result of a lack of proper understanding of the diversity and complexity of the problem at hand.
The Nigerian government’s efforts to clarify the situation and engage in diplomatic talks aim to mitigate any potential impact on the country’s economy and relationships with international partners. As the situation continues to unfold, the government’s response will be closely watched by investors, analysts, and the international community. With the NGX being a key indicator of the country’s economic performance, the government’s ability to navigate this challenge will be crucial in maintaining investor confidence and promoting economic growth.
