Donald Trump’s vow to restart oil drilling in the U.S. could send ripple effects through Nigeria’s economy, warns the Centre for the Promotion of Private Enterprise (CPPE). In an exclusive chat with Newsmen on Tuesday, CPPE’s Chief Executive Officer, Dr. Muda Yusuf, predicted that increased American crude supply would likely lower global energy prices while reducing Nigeria’s oil revenue and weakening the naira.
Trump, who was inaugurated on Monday as the 47th U.S. president, announced his country’s exit from the Paris Climate Agreement and other milestone executive orders designed to boost oil and gas output. Yusuf believes this development has a “double-edged” impact for Africa’s biggest economy.
“If investment in oil and gas increases in the U.S., it could raise global supply, pushing energy prices down,” Yusuf explained. “That drop would be positive for businesses here because local fuel costs would fall, but negative for Nigeria’s oil revenue.” He added that any revival of production in Russia, potentially brokered by Trump, would also flood the market with more supply, further impacting Nigeria’s export earnings.
Yusuf said surging U.S. economic confidence under Trump could strengthen the dollar. “With increased investments and employment, the dollar will likely gain, eroding the naira’s value. A stronger dollar invariably weakens the naira,” he noted.
Nigeria’s 2025 budget proposal of N49.7 trillion, currently before the National Assembly, banks heavily on a $75-per-barrel oil benchmark and an exchange rate of N1,500 per dollar. As of Wednesday morning, Brent crude traded at $79.37, while the naira closed at N1,552.78 against the dollar on Tuesday. Any prolonged slump in global oil prices could jeopardize Nigeria’s revenue projections and intensify pressure on the local currency.
