The Federal Government has moved swiftly to reassure investors and the business community following a joint security operation with the United States in Sokoto State, asserting that the action will bolster, not weaken, Nigeria's economic stability.
Intelligence-Led Operation Against Terrorists
In a statement issued on Sunday, December 28, by the Federal Ministry of Finance in Abuja, the Coordinating Minister for the Economy, Wale Edun, clarified the nature of the Christmas Day operation. He described it as a targeted, intelligence-led mission aimed exclusively at terrorist groups that threaten lives, national stability, and economic activity.
Edun emphasized a critical distinction: "Nigeria is not at war with itself, nor with any nation. What Nigeria is decisively confronting alongside trusted international partners, is terrorism. This distinction is important, and it is fundamental to understanding the positive economic implications of recent actions."
Linking Security to Economic Performance
The Minister directly addressed concerns that the military action, authorized by US President Donald Trump against suspected ISIS-linked fighters in northwest Nigeria, could unsettle financial markets. He argued that enhancing security is intrinsically pro-growth.
"The operation in question was precise, intelligence-led, and focused exclusively on terrorist elements," Edun stated. "Far from destabilising markets or weakening confidence, such actions strengthen the foundations of peace, protect productive communities, and reinforce the conditions required for sustainable growth."
He firmly linked the two spheres: "Security and economic stability are inseparable; every effort to safeguard Nigerians is, by definition, pro-growth and pro-investment."
Strong Macroeconomic Fundamentals Cited
To bolster his reassurance, Edun pointed to a series of improving economic indicators under President Bola Ahmed Tinubu's administration. He noted that Nigeria's economy grew by 3.98% in the third quarter of 2025, following a 4.23% growth in Q2, with an even stronger performance anticipated for the fourth quarter.
On inflation, he reported a positive trend, stating it has decelerated for seven consecutive periods and is now below 15%. Edun also highlighted the resilience of Nigeria's financial markets and pointed to recent credit rating upgrades by Moody’s, Fitch, and Standard & Poor’s as independent validations of the government's reform trajectory.
"Our domestic and international debt markets are stable and functioning efficiently, supported by prudent fiscal management," he added.
A Firm Message as Markets Reopen
Looking ahead to 2026, the Minister said the government remains focused on consolidating economic gains and building resilience. In a direct message to investors as markets reopened on Monday, December 29, Edun concluded with a firm commitment.
"Nigeria remains focused, reform-driven, and committed to stability. The fundamentals are strengthening, the policy direction is clear, and the resolve of this administration to protect lives, secure prosperity, and grow the economy is unwavering," he asserted. "Nigeria remains open for business, anchored in peace, and firmly focused on the future."
The government's statement aims to preempt any market anxiety, framing the Sokoto operation not as a geopolitical disruption but as a necessary step to secure the environment for long-term economic prosperity.
