By Ajibola Olaide, JKNews0
FLUCTUATIONS IN the Nigerian capital market are part of normal cycles and not triggered by U.S. President Donald Trump’s comments about Nigeria, the Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has stated.
Speaking on Channels Television’s Business Morning, Oyedele explained that recent declines in the Nigerian Exchange (NGX) should not be interpreted as politically driven sell-offs.
“The capital market is always an up-and-down situation,” he said. “Even after the sell-off yesterday, returns are still slim to about 40 per cent, and in dollar terms, about 50 percent.
This remains one of the best-performing markets in the world, and we want it to do even better. But there is no market where things continue to always go up.”
He noted that investor behaviour often involves taking profits after sustained periods of gains, leading to temporary dips.
“The problem we created,” Oyedele added, “is that after a long run of gains and a few days of declines, people started attributing it to two things: the capital gains tax, which is not correct, and Trump’s issue with Nigeria over the genocide comment.”
Oyedele further clarified that if foreign political factors influenced any market movements, it would only affect foreign investors. “Those people should be foreign investors, because Nigerian investors will not sell off because of Trump.
Otherwise, where will they take the investments to?” he asked, emphasising that foreign investors were not exiting the market.
“It’s just a normal market cycle where prices go up and down. Once we attribute them wrongly, it drives unnecessary sentiment,” he added.
Trump, on November 2, posted on his Truth Social platform, directing the Pentagon to develop a possible plan of attack in Nigeria, citing threats to Christianity in the country.
He warned that failure to stem killings could lead to military action, describing it as “fast, vicious, and sweet, just like the terrorist thugs attack our CHERISHED Christians.”
The U.S. President reiterated this threat two weeks later, and when asked aboard Air Force One about deploying troops or air strikes, he responded, “Could be, I envisage a lot of things.”
Promptly, the Federal Government of Nigeria has since opened diplomatic channels with the United States to address the tension. Minister of Information and National Orientation, Mohammed Idris, confirmed discussions during an interview with Sky News, noting that the talks were progressing positively.
“Channels of communication have been opened. I can confirm that we are talking with them, and I think they are understanding the situation better,” Idris said.
He added that much of the concern stems from a lack of proper understanding of Nigeria’s diverse and complex situation.
