Oyedele dismisses claims linking market sell-off to Trump’s remarks on Nigeria

Oyedele dismisses claims linking market sell-off to Trump’s remarks on Nigeria

Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Mr. Taiwo Oyedele, has dismissed claims that the recent decline in the Nigerian capital market was triggered by foreign investors reacting to comments made by former U.S. President Donald Trump about Nigeria.

Speaking on Channels Television, Oyedele explained that the fluctuations on the Nigerian Exchange (NGX) were part of normal market corrections and not a response to political statements or external controversies.

“The capital market is always an up-and-down situation,” he said. “Even after the sell-off yesterday, returns are still about 40 per cent — and in dollar terms, about 50 per cent. This remains one of the best-performing markets globally. There is no market where things continue to go up forever.”

Oyedele noted that the recent dip followed a period of extended rallies, describing it as a “temporary and expected adjustment” rather than a crisis. He said profit-taking by investors after prolonged gains was a common trend and should not be mistaken for panic or politically motivated action.

“After a long run of gains and a few days of declines, people began attributing it to two things — the capital gains tax and Trump’s issue with Nigeria over the genocide comment. Both are incorrect,” he clarified.

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The tax policy chief stressed that there was no evidence of capital flight or major sell-offs by foreign portfolio investors, adding that Nigerian investors were unlikely to react to such external remarks.

“If any investors were to react, they would be foreign investors. But where would Nigerian investors take their money to? There’s no indication of mass exits,” he said.

Oyedele maintained that Nigeria’s capital market remains resilient and fundamentally strong, with movements driven largely by economic realities and investor sentiment, not global political rhetoric.

He cautioned against “wrongly attributing” market movements to unrelated issues, saying such narratives could create unnecessary fear and distort investor perception.

Trump’s controversial remarks, posted on Truth Social on November 2, accused Nigeria of failing to protect Christians from persecution and warned of a possible “fast, vicious, and sweet” U.S. response — comments that drew diplomatic backlash.

Despite the uproar, Oyedele assured that Nigeria’s market fundamentals remain solid, and that the government is focused on stabilizing the economy and implementing fiscal reforms to sustain long-term growth.

Earlier, it was  reported that the NGX All-Share Index fell by 5.01 per cent on Tuesday, resulting in a ₦4.6 trillion loss in market capitalization. Analysts linked the downturn to investor unease over Nigeria’s recent designation by the U.S. as a “country of particular concern” and uncertainty surrounding the proposed 30 per cent Capital Gains Tax (CGT) set to take effect in January 2026.

Oyedele dismisses claims linking market sell-off to Trump’s remarks on Nigeria