Edun assures markets of stability as joint Sokoto operation targets terrorism without economic fallout
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has assured investors that the recent joint security operation between Nigeria and the United States in Sokoto State will not unsettle financial markets, but instead strengthen confidence in the country’s economic outlook.
In a statement issued on Sunday, Edun said the operation, which took place on Christmas Day, was carefully planned, intelligence-driven and narrowly focused on terrorist elements threatening lives, communities and economic activity.
The minister’s reassurance follows earlier remarks by U.S. President Donald Trump, who had signalled possible military action against terrorist groups operating in Nigeria, comments that initially triggered negative reactions in Nigeria’s financial markets in November.
According to Edun, the strikes were carried out with the approval of the Federal Government of Nigeria and form part of broader efforts to safeguard national security and protect economic stability.
“Nigeria is not at war with itself or with any other nation,” Edun said. “The operation was precise and targeted exclusively at terrorist threats. Far from weakening confidence, actions like this reinforce peace, protect productive communities and strengthen the foundation for sustainable growth. Security and economic stability are inseparable.”
He stressed that protecting lives and infrastructure ultimately supports investment and long-term development, describing the security action as pro-growth and pro-investment.
Edun also highlighted Nigeria’s improving macroeconomic indicators, noting that gross domestic product grew by 3.98 per cent in the third quarter of 2025, following 4.23 per cent growth in Q2. Inflation, he added, has declined for the seventh consecutive period, falling below 15 per cent, signalling improving price stability.
“Our financial markets remain resilient,” the minister said. “Both domestic and international debt markets are stable and functioning efficiently, supported by prudent fiscal management.”
He pointed to recent credit rating upgrades by Moody’s, Fitch and Standard & Poor’s as independent validation of Nigeria’s reform efforts and economic direction.
Edun said the administration remains committed to fiscal discipline, efficiency and macroeconomic stability, even amid external shocks and geopolitical risks.
Quoting President Bola Ahmed Tinubu, Edun said the government’s focus for 2026 is to consolidate economic gains recorded in 2025, strengthen resilience and build a more inclusive, growth-oriented economy.
“As markets reopen on Monday, December 29, investors can be confident that Nigeria remains reform-driven, stable and open for business,” he said. “The fundamentals are strengthening, policy direction is clear, and this administration’s resolve to secure lives and prosperity is unwavering.”
Market data showed that when U.S. military threats were first raised in early November, the naira weakened at both the official and parallel markets, while the Nigerian Exchange also recorded losses amid heightened investor caution. Bond market sentiment similarly softened, with rising Eurobond yields reflecting broader emerging market risk aversion at the time.
However, Edun’s latest comments aim to calm investor nerves, reaffirming that Nigeria’s security actions are aligned with long-term economic stability and growth.
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