The Centre for the Promotion of Private Enterprise (CPPE) has highlighted the potential impact of tightened U.S. immigration policies under the Trump administration on Nigerian diaspora remittances, which serve as a crucial source of foreign exchange for Nigeria.
Dr. Muda Yusuf, Director/CEO of CPPE, emphasized that stricter immigration enforcement could affect the Nigerian diaspora community, estimated at 500,000 individuals in the U.S., thereby reducing remittance flows into Nigeria.
Yusuf noted that the Trump administration’s commitment to increasing U.S. oil output and easing global geopolitical tensions could lead to a drop in global oil prices.
This scenario according to him threatens Nigeria’s 2025 budget benchmark of $75 per barrel, potentially reducing government revenue and foreign exchange earnings.
He said the Trump administration’s protectionist trade policies may disrupt global supply chains, while Nigeria faces risks from the potential termination of AGOA. However, Nigerian businesses could exploit supply gaps in the U.S. market created by trade wars.
Yusuf noted that falling oil prices may strain government finances, leading to higher fiscal deficits. Additionally, a stronger U.S. dollar could weaken the naira, increasing import costs and inflation.
He said the possible termination of USAID’s $1.02bn annual aid to Nigeria could impact key sectors like health and education, though the government is exploring mitigation measures.
He urged the Nigerian government to adopt a stronger commitment to self-reliance and reduce import dependence, particularly in critical sectors such as energy, food, pharmaceuticals, and security.
He emphasized that excessive reliance on imports poses significant risks to Nigeria’s economic and social stability.
Yusuf highlighted the lessons learned from global disruptions, including the COVID-19 pandemic, noting that no country should overly depend on external sources for strategic needs. He stressed the importance of policies that build economic resilience and mitigate vulnerabilities to external shocks.
He called for localized supply chains and emphasized that the evolving global order is shifting towards economic nationalism, deglobalization, and economic fragmentation. Nigeria’s trade and industrial policies must reflect this new reality to ensure long-term economic stability.
The CPPE director urged the government to deepen backward integration, encourage domestic production, and enhance export development. He highlighted ongoing economic reforms aimed at reducing import dependence and called for intensified efforts in achieving food, energy, health, and internal security through domestic resources.
Yusuf also underscored the need to address productivity challenges in the real sector to enhance competitiveness both locally and internationally. He stressed that protecting domestic industries from unfair foreign competition is crucial amid current global economic shifts.
