The U.S. immigration policies under President Trump are expected to severely impact Nigeria’s economy, particularly its oil revenues and diaspora remittances. Economic nationalism, trade protectionism, and a stronger dollar pose additional challenges. Yusuf emphasizes the necessity for Nigeria to enhance self-reliance in essential sectors to overcome these external pressures.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), has outlined the significant economic repercussions of U.S. immigration policies under President Donald Trump, particularly impacting Nigeria. He noted that changes in U.S. trade and energy policies could lead to fluctuations in oil prices, affecting Nigeria’s revenue, trade relations, and foreign exchange earnings while increasing fiscal risks.
Yusuf explained that Trump’s strategy, which aims to elevate U.S. oil production, may cause oil prices to decrease, potentially dropping below Nigeria’s budget benchmark of $75 per barrel. This scenario could harm government revenue, especially if diplomatic resolutions in the Russia-Ukraine conflict increase global oil supply further.
Additionally, he emphasized Trump’s withdrawal from the Paris Climate Accord, which could encourage fossil fuel investments but heighten fiscal risks for Nigeria, an oil-dependent country. Lower oil prices may result in cheaper fuels internationally, yet they could lead to adverse economic outcomes in Nigeria.
The CPPE boss also warned about potential disruptions to global trade due to the Trump administration’s protectionism. The possible cancellation of the African Growth and Opportunity Act (AGOA) could threaten Nigerian exports, despite Nigeria not fully capitalizing on AGOA benefits.
Yusuf identified the trade wars instigated by the U.S. as both a challenge and an opportunity. While certain global supply chain issues might create new openings for Nigerian businesses, increased import tariffs from the U.S. could burden Nigeria with higher inflation rates, easing access to essential goods and services.
Another concern raised was the expectation of a weakened naira due to the U.S. tightening monetary policy, linked to rising inflation. A stronger dollar typically leads to higher costs for imported goods in Nigeria, putting further strain on local businesses and consumers.
Yusuf highlighted the direct risk to diaspora remittances as U.S. immigration enforcement escalates, which could adversely affect the estimated 500,000 Nigerians residing there. A decline in remittance inflows would significantly impact Nigerian households’ income and the nation’s foreign exchange reserves.
Furthermore, the CPPE noted the potential suspension of U.S. aid programs, which could create significant gaps in Nigeria’s funding, especially in critical sectors like healthcare and education. Strategies to mitigate these risks are under development, but a reduction in funding may destabilize progress in health and governance.
To enhance economic resilience, Yusuf suggested that Nigeria focus on self-reliance across crucial sectors like energy, food production, pharmaceuticals, and security, particularly in light of the trends toward economic nationalism and deglobalization. He stressed the need for Nigeria to limit import reliance to safeguard against external shocks.
The article emphasizes the extensive effects of tightened U.S. immigration and trade policies under Trump, with significant implications for Nigeria’s economy. The risks of decreased oil revenues, disrupted trade, weaker currency, and declining diaspora remittances underline a critical need for Nigeria to build self-reliance in key economic sectors to mitigate external vulnerabilities.
Original Source: thewhistler.ng
