Nigeria’s financial markets kicked off the week on a shaky note as global fears over new trade tariffs announced by Donald Trump sparked heavy selloffs across major markets.

The pressure was immediately felt on Monday morning in Nigeria’s bond and currency markets, where volatility surged early in the day.

Investors responded to growing global uncertainty by pulling back from riskier assets, a move that has had ripple effects in emerging economies like Nigeria.

In an early attempt to calm the foreign exchange (FX) market, the Central Bank of Nigeria (CBN) sold $124 million before 10 a.m. at rates between N1,595 and N1,611 per dollar.

This comes just days after the CBN intervened with another $197 million on Friday, a clear signal the apex bank is stepping up its efforts to stabilize the naira.

But despite these sizable interventions, the naira remained under heavy pressure as demand far outpaced available dollars.

Traders noted that liquidity remains thin and uncertainty high, driven by both local economic concerns and the broader turbulence shaking international markets.

Meanwhile, Nigeria’s Eurobond market also suffered sharp losses.

Prices for the country’s sovereign bonds dropped by as much as $5 across different maturities, with yields soaring to around 12%.

Analysts say this spike in yields reflects rising borrowing costs and could make it harder for Nigeria to raise funds through international debt in the short term.

Market watchers pointed out that this selloff wasn’t necessarily due to any sudden change in Nigeria’s economic fundamentals.

Instead, they blame it on rising fears across global financial markets, particularly after Trump’s announcement of sweeping new tariffs.

Last week, the former U.S. president introduced a plan to impose a 10% tariff on all imports, alongside specific duties targeting Chinese and Mexican goods.

This policy shift set off a chain reaction around the world.

In the U.S., futures tracking major indices dropped sharply, the S&P 500 fell by 3.1% and the Nasdaq was down 3.4%.

Asia saw steeper declines, with Hong Kong’s Hang Seng Index losing over 13%, its biggest single-day drop in more than two decades.

European markets were also hit hard, as the Stoxx Europe 600, Germany’s DAX, and the UK’s FTSE 100 all registered significant losses.

Financial experts say these market moves reflect growing concerns about a return to protectionist trade policies, rising inflation risks, and uncertainty over how global central banks will respond.

With global trade flows potentially disrupted, emerging markets like Nigeria may face more external shocks.

For Nigeria, the dual interventions by the CBN, totaling nearly $321 million in less than a week, suggest authorities are moving swiftly to prevent panic.

But analysts warn that quick fixes may not be enough. Clear and sustained communication around FX policy will be critical in calming investor nerves.

On the fiscal front, the rising cost of borrowing, evident in surging Eurobond yields, could derail the government’s financing plans, particularly as it looks to raise more funds from foreign lenders this year.

If borrowing costs remain high, Nigeria may face added pressure in managing debt repayments and funding infrastructure goals.

With global markets now under renewed stress, Nigerian policymakers may be facing one of their toughest tests yet in 2025.