What Donald Trump’s second Presidency means for Nigerian economy 

Donald Trump’s return to the White House as the 47th President of the United States, following a dramatic victory over Kamala Harris, brings new questions for Nigeria’s economic outlook.

Trump’s economic policies, built around “America First,” prioritize domestic energy production, tariffs on imports, and pushing for low interest rates.

These policies could have a significant impact on Nigeria’s economy, particularly in the areas of exchange rates, capital flows, inflation, and immigration. Below is an analysis of how these shifts could affect Nigeria’s economic landscape.

Donald Trump’s second term could have sweeping implications for Nigeria’s economy.

Exchange Rate pressures from a Stronger Dollar

Trump’s policies could lead to a stronger U.S. dollar, particularly if his administration imposes tariffs that increase demand for domestically produced goods and services.

Historically, Trump has favoured a low-interest-rate environment, pushing the Federal Reserve to maintain a loose monetary policy even during periods of economic growth.

From 2016 to 2020, Nigeria attracted approximately $58.1 billion in capital importation, with 2019 seeing the highest inflows at $23 billion.

Trump’s focus on reducing U.S. energy costs by increasing domestic oil production and drilling on federal lands could mean sustained low global oil prices. In his first term,

Trump’s return to office raises concerns for Nigerians regarding U.S. immigration policy. His administration previously imposed travel restrictions on Nigeria, citing national security risks, which disrupted the movement of students, professionals, and family members.

Under Trump’s “America First” foreign policy, military aid and development assistance to African nations were deprioritized in favour of reducing overseas commitments.

Trump’s “Buy American” policy has often focused on reducing imports and increasing tariffs, which could impact Nigeria’s trade relationship with the U.S.