U.S. Policies Destabilising Nigeria’s Market – FG Cries Out 

U.S. Policies Destabilising Nigeria’s Market – FG Cries Out 

 

 

The Federal Government has raised serious concerns over the lingering effects of U.S. President Donald Trump’s foreign policy decisions, which it says are contributing to the ongoing instability in Nigeria’s oil-dependent economy.

 

Speaking at a press briefing organized by the Presidential Communications Team at Aso Rock Villa, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said that Nigeria is grappling with severe revenue shortfalls due to global oil market volatility—much of which he attributed to the erratic nature of U.S. foreign policy under Trump.

 

Ahmed noted that while lower global oil prices might seem like good news for Nigerian consumers at the pump, the overall impact on national revenue is damaging.

 “As consumers, lower pump prices seem like a relief. But for a nation that depends significantly on crude oil exports for foreign exchange earnings, this is a serious concern,” he said. “Our revenue inflows are taking a hit.”

 

Trump’s Policies Still Sending Shockwaves

 

Ahmed singled out the U.S. president’s tendency to make abrupt policy shifts—particularly in areas like trade and energy—as a major contributor to the current market unpredictability.

 “What’s destabilizing the global market even more are the inconsistencies in U.S. policies,” Ahmed explained. “President Trump had a pattern of announcing one policy direction today, only to reverse it tomorrow. This unpredictability makes it nearly impossible to forecast where the market is headed.”

 

He cited a sudden drop in oil prices from $73 to $60 per barrel in a single trading day as a stark example of how sensitive Nigeria’s economy is to global developments.

 

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Ahmed also pointed to Trump’s aggressive trade policies, including tariff wars with China and threats of duties on other economies, as factors that have disrupted global trade flows and shaken investor confidence—ultimately affecting oil prices.

 “Traders and investors are reacting with caution. Many are engaging in day-to-day trades without long-term commitments due to fears that the next American policy could dramatically alter the market again,” he added.

 

Local Challenges Add to the Crisis

 

Beyond international instability, Ahmed acknowledged that Nigeria’s internal issues—such as pipeline vandalism, oil theft, and underwhelming production—are compounding the situation.

 

According to recent data from OPEC, Nigeria’s oil output has dipped to around 1.4 million barrels per day, significantly below its potential and its allocated production quota.

“These are not just numbers, they translate directly to reduced national income,” Ahmed said. “When global prices fall and domestic output also drops, it’s a double blow to our economy.”

A Call for Strategic Reforms

 

Looking ahead, Ahmed emphasized the need for Nigeria to build resilience against external shocks. He called for stronger investment in local refining capacity and the expansion of the country’s gas infrastructure.

“Our long-term security lies in building a robust non-oil sector, expanding domestic refining, and investing in gas infrastructure,” he said.

Ahmed concluded with a call for more consistent and coordinated policy responses, both domestically and internationally, to help Nigeria navigate the uncertain global energy landscape.

 “Ultimately, Nigeria must reposition itself to adapt swiftly to global trends while minimizing the risks associated with dependency on oil exports,” he stressed.

As Nigeria continues to weather a complex mix of global and domestic challenges, the message from the NMDPRA is clear: strategic action is urgently needed to secure the nation’s economic future.