Alleged Coup: Ex-Minister Sylva, retired general, others to be arraigned today

This is less about the named individuals and more about the state signaling that internal security risk is being escalated into a public, judicially-backed narrative. That matters because once an alleged coup plot is converted into a treason/terror-financing case, the regime gains a broader mandate for surveillance, arrests, and intra-security vetting that can persist for months even if the case weakens in court. The second-order effect is a higher political risk premium for anything exposed to federal contracts, regulatory discretion, or elite patronage networks tied to the South-South and oil services ecosystem.

The most immediate market impact is not a broad equity selloff but a tightening of behavior around domestically sensitive assets: banks, telecoms, and oil names with exposed local stakeholder relationships can see headline-driven de-risking, especially in the next 1-2 weeks around arraignment and possible new disclosures. If the government believes the case has deterrent value, expect selective leak cycles and additional names to be floated; that keeps uncertainty elevated and suppresses local risk appetite even without formal new sanctions or policy changes. Conversely, if the state overreaches and the defense frames this as politicized prosecution, the credibility cost could rebound into more skepticism around institutions, which is itself a medium-term negative for valuation multiples.

The contrarian read is that this may actually be a governance clean-up masquerading as a security case: by linking military, police, and political figures to finance flows, the state is trying to deter cross-institutional collusion rather than signaling imminent regime instability. If so, the tail risk is real but the base case is not a broad coup probability increase; instead, it is a sustained clampdown that raises transaction frictions and due-diligence costs for politically connected capital. That argues for trading the volatility in narratives, not making a binary macro call on Nigeria's sovereign risk.