The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has assured investors and market participants that Nigeria’s recent joint security operation with the United States in Sokoto State will not destabilise the economy or financial markets, but instead reinforce confidence in the country’s security and investment climate.
Edun gave the assurance in a statement issued on Sunday, following reactions to reports of a US-backed military operation conducted on Christmas Day in parts of northwest Nigeria.
Operation intelligence-led, Edun says
According to the minister, the operation was intelligence-driven, limited in scope, and targeted solely at terrorist elements threatening national stability and local communities.
He stressed that the action should be viewed within the context of Nigeria’s broader efforts to restore security, protect lives, and create a stable environment for economic growth.
“The joint operation was carefully coordinated and based on credible intelligence,” Edun said. “It does not pose any risk to market stability. On the contrary, decisive actions against terrorism strengthen investor confidence and support long-term economic resilience.”
Market concerns after Trump’s warning
The reassurance follows earlier concerns in financial circles after US President Donald Trump warned in November that the United States could take military action against terrorist groups operating in Nigeria. That statement had triggered unease in parts of the financial market, with investors wary of potential geopolitical risks.
Over the Christmas period, the US president announced that American forces had carried out strikes against terrorist targets in northwest Nigeria, saying the action followed earlier warnings.
While security analysts described the operation as limited and coordinated, its announcement quickly drew attention from both political and economic stakeholders.
Government moves to calm investors
Edun said the Federal Government was conscious of how security developments can influence market sentiment and capital flows, particularly in an environment where Nigeria is pursuing fiscal reforms, attracting foreign investment, and stabilising the macroeconomy.
He emphasised that Nigeria remains open for business, adding that collaboration with international partners on security issues should be seen as a positive signal.
“For investors, stability and predictability matter,” Edun noted. “Addressing security threats decisively is part of creating the conditions for sustainable growth, job creation, and improved public finances.”
Broader economic context
The reassurance comes as Nigeria continues to navigate economic reforms, including revenue mobilisation, exchange rate adjustments, and efforts to improve investor confidence across key sectors such as energy, agriculture, and manufacturing.
Analysts say that while security-related headlines can trigger short-term volatility, clarity from economic managers helps to anchor expectations and limit market disruptions.
With the Finance Ministry signalling policy continuity and close coordination across government agencies, officials believe the Sokoto operation will be interpreted by investors as a step toward improved security rather than a source of economic risk.
