The Centre for the Promotion of Private Enterprise (CPPE) has explained the potential impact of U.S. President Donald Trump’s policies on Nigeria’s oil revenue and economy, particularly concerning petrol prices and the value of the Naira.
In an exclusive interview with DAILY POST on Tuesday, Dr. Muda Yusuf, the Chief Executive Officer of CPPE, discussed the far-reaching effects of Trump’s decision to restart oil drilling in the U.S. and its implications on global oil supply. According to Yusuf, this could lead to a drop in global oil prices, which would negatively affect Nigeria’s crude revenue.
“Trump’s decision to restart oil drilling may boost global crude supply, leading to a reduction in global oil prices. This will impact Nigeria’s oil revenue,” Yusuf explained. However, he also noted that lower global oil prices could benefit Nigerians by reducing local energy prices. “A reduction in crude prices typically lowers the cost of energy locally, such as petrol, diesel, and jet fuel, which is positive for businesses and consumers,” he added.
Yusuf also highlighted another potential outcome of Trump’s presidency: if he successfully calms the ongoing conflict between Russia and Ukraine, global oil production could increase further, which would likely push prices down. While this would hurt Nigeria’s oil revenue, it would help reduce domestic energy costs, benefiting Nigerian businesses and consumers.
On the impact of Trump’s policies on the value of the Naira, Yusuf predicted that a stronger U.S. economy, driven by increased investment and job growth, could lead to a stronger dollar. “If the dollar strengthens, the Naira will likely weaken,” he said, noting that investors’ confidence in the U.S. economy is already on the rise, as seen in the U.S. stock market.
At the time of the interview, Brent crude was priced at $79.37 per barrel, and the Naira to Dollar exchange rate stood at N1,552.78, according to the latest market data.
Nigeria’s economy heavily relies on oil revenue, and the country’s 2025 budget, currently before the National Assembly, is based on an oil price benchmark of $75 per barrel and an exchange rate of N1,500 to the dollar. The potential fluctuation of oil prices and the Naira’s value under Trump’s policies could significantly impact Nigeria’s financial projections.
