The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has assured investors that the country’s recent joint security operation with the United States in Sokoto will not destabilise markets, but rather reinforce economic confidence.

Speaking in a statement on Sunday, Edun emphasised that the operation, conducted on Christmas Day, was intelligence-led and targeted solely at terrorist elements threatening national stability and communities.

The PUNCH reports that US President Donald Trump had made good on his threat of military action against terrorists in Nigeria — a threat he made in November that financial markets reacted to negatively.

Trump, on his Truth Social platform, had said, “Tonight, at my direction as Commander in Chief, the United States launched a powerful and deadly strike against ISIS terrorist scum in northwest Nigeria, who have been targeting and viciously killing, primarily, innocent Christians, at levels not seen for many years, and even centuries.

‘I have previously warned these terrorists that if they did not stop the slaughtering of Christians, there would be hell to pay, and tonight, there was. The Department of War executed numerous perfect strikes, as only the United States is capable of doing.

“Under my leadership, our country will not allow radical Islamic terrorism to prosper. May God bless our military, and Merry Christmas to all, including the dead terrorists, of which there will be many more if their slaughter of Christians continues.”

The military strikes have since been framed as an operation approved by the Federal Government, with more strikes likely.

In his statement on Sunday, Edun stressed that Nigeria is not at war with itself or any other country, and that the action is part of ongoing efforts to safeguard citizens and protect economic activity.

“The operation in question was precise, intelligence-led, and focused exclusively on terrorist elements that threaten innocent lives, national stability, and economic activity. 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. Security and economic stability are inseparable; every effort to safeguard Nigerians is, by definition, pro-growth and pro-investment,” he said.

The finance minister also underscored Nigeria’s solid macroeconomic performance, noting GDP growth of 3.98 per cent in the third quarter of 2025, following a 4.23 per cent expansion in Q2. Inflation has continued its downward trend for the seventh consecutive period, falling below 15 per cent reflecting improving price stability.

He maintained, “Our financial markets remain resilient. Domestic and international debt markets are stable and functioning efficiently, supported by prudent fiscal management. Over the past year, Nigeria has received credit rating upgrades from Moody’s, Fitch, and Standard & Poor’s—clear, independent endorsements of the strength of our reforms and the credibility of our economic direction. We have maintained fiscal discipline, prioritised efficiency, and protected macroeconomic stability—demonstrating resilience in the face of external shocks.

“As President Bola Tinubu noted in his address last week, our overarching objective for 2026 is to consolidate the gains of 2025, strengthen Nigeria’s economic resilience, and continue building a sustainable, inclusive, and growth-oriented economy.

“The actions we take today—on security, reforms, and fiscal discipline—are aligned with that goal. As markets reopen on Monday, 29 December 2025, investors can be confident that 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.”

As markets reopen on Monday, Edun reassured investors that Nigeria remains open for business, anchored in peace, and firmly focused on the future.

The PUNCH reports that when Trump issued the threat of a military strike in early November, both the naira and the Nigerian Exchange reacted bearishly. The naira slid from its 2025 peak of N1,421.73/$ to N1,436.34/$ — a sharp 1.03 per cent decline, or N14.61, on November 3, 2025. At the parallel market, the naira also weakened to N1,455.00/$.

On the same day, the Nigerian Exchange Limited’s All-Share Index contracted by 0.25 per cent to settle at 153,739.11 points, bringing year-to-date gains to 49.37 per cent. The trading trend also led to a loss of N245.88bn in market capitalisation.

At the bond market, Cowry Assets Management indicated that appetite for Nigerian Eurobonds weakened, with average yields expanding by five basis points to 7.70 per cent. This was indicative of bearish sentiment and defensive positioning in the offshore debt space, driven by prevailing macroeconomic headwinds and heightened geopolitical risk aversion across emerging market credit.

Ecobank Nigeria has assured customers of uninterrupted access to banking services throughout the year-end holiday period via its secure and robust digital platforms.

In a statement on Friday, the bank also urged customers to remain vigilant against fraud and scams during the festive season.

Speaking on the development, the Head, Products & Analytics, Consumer & Commercial Banking, Ecobank Nigeria, Victor Yalokwu, said the bank’s digital channels and over 35,000 Ecobank Xpress Point (agency banking) locations nationwide will remain fully available to support customers throughout the yuletide and year-end holiday period.

He noted that customers will continue to enjoy a wide range of services during the period, including local and international funds transfers, bill payments and airtime top-ups, merchant and QR payments, balance inquiries and account statements, as well as cardless cash withdrawals via ATMs.

“Ecobank encourages customers to leverage these digital solutions for safe, fast, and efficient banking, especially during the festive season when convenience and reliability are essential. While physical branch operations may be subject to adjusted working hours in line with public holidays, customers can be assured that Ecobank’s digital platforms are designed to deliver uninterrupted service and enhanced security at all times.

“Ecobank remains committed to providing innovative financial solutions and exceptional customer service, and we wish all our customers a joyful festive season and a prosperous New Year,” he said.

Yalokwu also cautioned customers to remain vigilant against fraudsters and scammers during the period.

“Before you wrap up the year, tighten your security. December brings online sales, travel, and year-end distractions—this is exactly when scammers are most active. From fake festive deals to cloned merchant sites and suspicious messages, staying vigilant helps keep your money safe,” he said.

He advised customers to shop only on trusted websites, never share their PINs, passwords, or one-time passwords, avoid banking on public Wi-Fi networks, be cautious of urgent or emotionally charged messages, and regularly review their account activity.

The PUNCH reports that Ecobank Nigeria is a member of the Ecobank Group, the pan-African banking institution with operations in 33 African countries and international offices in London, Paris, Beijing, and Dubai.

States and Local Government councils reduced their bank borrowings by about N547.52bn in one year, as Federation Account inflows surge, according to findings by Saturday PUNCH.

Figures from the Central Bank of Nigeria’s latest Quarterly Statistical Bulletin reveal that the banking sector’s “claims on state and Local Governments” fell from N2.68tn in June 2024 to N2.13tn in June 2025.

This means sub-national governments collectively cut their indebtedness to commercial and merchant banks by 20.4 per cent year-on-year.

Further analysis shows that in January 2024, banks’ exposure to states and councils stood at N2.73tn. One year later, in January 2025, the figure had dropped to N2.44tn, indicating that about N292bn was cleared during that period.

The outstanding balance then ticked up slightly in February 2025 to N2.59tn and eased again to N2.55tn in March 2025. By April and May 2025, exposure steadied around N2.44tn–N2.45tn, before a sharp decline to N2.13tn in June 2025, representing the largest single-month adjustment during the year.

Year-on-year, June provided the clearest shift. The banks were owed N2.68tn in June 2024, but the balance had fallen by more than half a trillion naira a year later.

Month-on-month, the drop from May 2025’s N2.45tn to June 2025’s N2.13tn amounted to about N313bn, signalling an aggressive push to unwind bank obligations at the end of the second quarter amid high interest rates and rising FAAC allocations.

It was observed that throughout 2024, the Central Bank of Nigeria’s Monetary Policy Committee aggressively tightened policy, lifting the Monetary Policy Rate from 18.75 per cent at the start of the year to about 27.50 per cent by November, through multiple successive hikes to rein in inflation and stabilise the exchange rate.

In 2025, the MPC largely held rates steady at 27.50 per cent for much of the year, signalling a cautious pause after the earlier tightening cycle as inflation began to moderate. However, in September 2025, the committee delivered its first rate cut in five years, trimming the MPR to 27.00 per cent, reflecting slowing price pressures and a gradual shift toward supporting broader economic activity.

By November 2025, the CBN reaffirmed the 27.00 per cent benchmark, balancing the need to sustain disinflation with financial stability concerns as borrowing costs remained high but gradually more accommodative.

The high interest rate likely pushed sub-nationals to reduce borrowing as FAAC allocations rise. Further analysis of FAAC records shows a jump in what state governments and local government councils jointly received in 2025 compared with 2024, reflecting the scale of the revenue windfall now flowing through the federation account.

Data from the Office of the Accountant-General of the Federation show that states and local governments jointly received N12.67tn in 2025, up from N8.96tn in 2024. These figures exclude the 13 per cent derivation fund for oil-producing states. The difference of N3.71tn represents a 41.4 per cent surge in year-on-year statutory inflows to the two tiers of government.

When the 13 per cent derivation fund is added, the gap remains just as stark. States and councils together received N14.28tn in 2025, compared with N10.31tn in 2024, meaning an extra N3.98tn, or about 38.6 per cent more than the previous year.

The derivation component alone rose from N1.35tn in 2024 to N1.62tn in 2025. A closer look at the breakdown shows that states were the biggest beneficiaries in absolute terms.

State governments’ FAAC share rose from N5.19tn in 2024 to N7.31tn in 2025, an increase of N2.13tn, equivalent to a 41 per cent rise year-on-year. Local government councils followed the same pattern, with allocations rising from N3.77tn in 2024 to N5.35tn in 2025 — a jump of N1.58tn, or 41.8 per cent.

The trend was visible month after month. In January 2024, states received N396.69bn, but by January 2025, this had risen to N498.50bn. The figures continued to climb through the year, peaking at N727.17bn for states in October 2025, before closing the year at N601.73bn in December 2025, still well above the N549.79bn recorded in December 2024.

Local governments recorded the same step-change. Councils received N288.93bn in January 2024, compared with N361.75bn in January 2025. Allocations crossed the N500bn mark in the final quarter of 2025, reaching N529.95bn in October, the highest for the year, before ending at N445.27bn in December 2025, higher than the N402.55bn shared in December 2024.

The 2024 figures show that allocations to councils typically sat in the N267bn–N294bn band for much of the first half of that year, while state allocations hovered around N366bn–N403bn.

In contrast, the 2025 data show that councils rarely received below N387bn and states seldom below N498bn in any month. Overall, total FAAC allocations to all three tiers of government rose from N13.91tn in 2024 to N20.28tn in 2025, while the total distributable revenue, including derivation, climbed from N15.26tn to N21.89tn. States and councils together accounted for the bulk of that increase.

The surge in inflows also seems to drive the decrease in the bank debt of states and councils. In a recent statement by the acting Director of Communication and Stakeholders Management at the Nigeria Extractive Industries Transparency Initiative, Mrs Obiageli Onuorah, the agency noted that the report highlighted the financial strain on states due to debt repayments, despite record-high disbursements from the Federation Accounts Allocation Committee.

According to the statement, a report by NEITI showed that several states with high debt burdens also ranked lower in FAAC allocations, raising concerns about their fiscal sustainability and ability to fund critical projects.

“The report noted that many states with high debt ratios were in the lower half of the FAAC allocation rankings but ranked higher for debt deductions, raising concerns about their debt-to-revenue ratios and overall fiscal health,” the statement read.

The Director-General of Nigeria’s Debt Management Office, Ms Patience Oniha, recently called on state governments to adopt Public-Private Partnerships and prioritise tax revenue generation over borrowing to fund infrastructure projects.

She made these remarks during a one-day workshop in Lagos, organised under the States Action on Business Enabling Reforms Programme with World Bank support. Oniha said, “Borrowing should not be the major way to source funds.  You must increase your revenues by increasing your tax revenues.

“Public-private partnerships can help improve Nigeria’s economy by attracting private sector investment and expertise to develop infrastructure and deliver public services. This reduces the financial burden on the government, accelerates project delivery, and often results in higher quality outcomes. PPPs can also create jobs, stimulate local businesses, and foster innovation.”