President Donald Trump has officially assumed office as the 47th President of the United States, marking his second term as the nation’s leader.
In his first days, President Trump has introduced policies aimed at reshaping immigration, the economy, and global health.
Speaking with NIGPOST, Prof. Godwin Oyedokun, a distinguished economist from Lead City University, Ibadan, shared insights on how these developments could influence Nigeria’s economic and health sectors.
Impact of US Oil Drilling on Nigeria’s Economy
The United States’ renewed focus on oil drilling is poised to significantly affect Nigeria’s oil-dependent economy.
With over 80% of its foreign exchange earnings reliant on crude oil exports, Nigeria may face severe challenges.
Prof. Oyedokun highlighted that increased US oil production could oversupply the global market, leading to a drop in oil prices.
This would reduce Nigeria’s revenue and worsen foreign exchange constraints.
Furthermore, US shale oil often competes with Nigeria’s light crude, potentially decreasing global demand for Nigeria’s oil and further straining its trade balance.
Implications for Nigeria’s 2025 Budget
Nigeria’s 2025 budget, heavily dependent on oil revenue projections, could face setbacks if oil prices drop.
Revenue shortfalls may lead to increased borrowing, affecting the implementation of key infrastructure and social welfare projects.
“This situation could exacerbate Nigeria’s debt profile, putting additional pressure on the government to manage fiscal challenges,” Oyedokun stated.
Ending Birthright Citizenship: A Mixed Outcome
Trump’s proposal to end birthright citizenship could discourage wealthy Nigerians, including corrupt politicians, from exploiting the US healthcare system for childbirth.
However, this policy may also strain Nigeria’s diaspora community, with stricter immigration rules likely impacting Nigerians already in the US.
Oyedokun suggested that this shift could encourage investment in Nigeria’s healthcare system as fewer Nigerians pursue childbirth abroad.
Foreign Aid Realignment and Its Effects
Last year, the United States invested $1 billion in Nigeria through USAID, supporting health, education, and security initiatives.
However, Trump’s plans to reevaluate and realign foreign aid could result in reduced funding.
“This could negatively impact critical programs, such as polio eradication and anti-terrorism efforts.
Nigeria must explore alternative funding sources and focus on sustainable domestic solutions,” Oyedokun advised.
US Withdrawal from WHO: A Health Sector Concern
The US withdrawal from the World Health Organization (WHO) poses a significant threat to Nigeria’s health programs, including malaria and HIV/AIDS campaigns.
As the WHO faces potential funding gaps, Nigeria may need to allocate more resources to healthcare and strengthen partnerships with other global organizations like the EU and African Union.
Opportunities for Reform
While Trump’s policies present challenges, they also offer opportunities for Nigeria to reassess its priorities:
1. Diversify the Economy: Reduce reliance on oil by investing in non-oil sectors.
2. Strengthen Healthcare and Education: Boost domestic infrastructure to lessen dependency on foreign aid.
3. Promote Transparency: Encourage accountability in governance to attract foreign investment.
Prof. Oyedokun concluded, “These reforms are essential for Nigeria to thrive despite external pressures.”
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