{"id":1128,"date":"2025-04-23T08:47:21","date_gmt":"2025-04-23T08:47:21","guid":{"rendered":"https:\/\/firearmupgrades.com\/?p=1128"},"modified":"2025-04-23T08:47:21","modified_gmt":"2025-04-23T08:47:21","slug":"can-nigeria-trump-proof-its-economy","status":"publish","type":"post","link":"https:\/\/firearmupgrades.com\/?p=1128","title":{"rendered":"Can Nigeria Trump-Proof Its Economy?"},"content":{"rendered":"<p> <br \/>\n<br \/><\/p>\n<div>\n<p>Welcome to <em>Foreign Policy<\/em>\u2019s Africa Brief.<\/p>\n<p>The highlights this week: Nigeria seeks to reverse its legacy of <strong>trade protectionism<\/strong>, the <strong>Democratic Republic of the Congo<\/strong> bans an ex-president\u2019s political party, and <strong>Tunisia\u2019s crackdown <\/strong>on government critics intensifies.<\/p>\n<div class=\"newsletter-unit-signup--shortcode-fallback\">\n<h2 class=\"dek-heading\">\n                <a href=\"https:\/\/foreignpolicy.com\/category\/africa-brief\/\">Sign up<\/a>  to receive Africa Brief in your inbox every Wednesday.            <\/h2>\n<\/p><\/div>\n<div data-shortcode-newsletter=\"africa_brief\" class=\"newsletter-unit-signup newsletter-unit-signup--shortcode email-capture--step-1 newsletter-unit-signup--shortcode-africa_brief\">\n<div class=\"newsletter-africa_brief newsletter-shortcode-africa_brief\">\n<div class=\"show-on-email-capture--signed-up hide-from-newsletter-subscriber newsletter-unit-signup--shortcode--container\">\n<div class=\"newsletter-unit newsletters-page newsletter-row\">\n<div class=\"newsletter-africa_brief\">\n<h2 class=\"dek-heading\">Sign up to receive Africa Brief in your inbox every Wednesday.<\/h2>\n<p>\n                        <button class=\"button\">Sign Up<\/button>\n                    <\/p>\n<div class=\"grid--flex newsletter-africa_brief newsletter-signup-container\" role=\"group\" aria-label=\"Africa Brief sign up form\" tabindex=\"0\">\n<div class=\"buttons\">\n<div class=\"hide-from-newsletter-subscriber privacy-policy-container\">\n<div class=\"privacy-policy-acknowledge\">\n<p><small>By submitting your email, you agree to the <a href=\"https:\/\/foreignpolicy.com\/privacy\/\" target=\"_blank\">Privacy Policy<\/a> and <a href=\"https:\/\/foreignpolicy.com\/termsofuse\/\" target=\"_blank\">Terms of Use<\/a> and to receive email correspondence from us. You may opt out at any time.<\/small><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>\n    <label for=\"email-africa_brief\">Enter your email<\/label><br \/>\n    <input type=\"email\" name=\"email\" class=\"hide-from-reg hide-from-sub\" id=\"email-africa_brief\" aria-required=\"true\" required=\"\"\/><\/p>\n<p>    <button class=\"button button--signup \" data-newsletter-id=\"africa_brief\" data-sourceid=\"In-article unit\">Sign Up<\/button>\n  <\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<hr\/>\n<h3>Nigeria Seeks to Trump-Proof its Economy<\/h3>\n<p>Nigeria <a href=\"https:\/\/www.reuters.com\/world\/africa\/nigeria-signs-minerals-pact-with-south-africa-diversification-push-2025-04-17\/\">signed<\/a> a minerals deal with South Africa last Thursday as it seeks to diversify from oil, which currently accounts for around 90 percent of Abuja\u2019s exports. According to the pact, the two countries will share technology to boost mineral extraction in Nigeria\u2014a nation rich in gold, lithium, and iron ore that goes largely untapped, as mining <a href=\"https:\/\/www.reuters.com\/world\/africa\/nigeria-signs-minerals-pact-with-south-africa-diversification-push-2025-04-17\/\">contributes<\/a> less than 1 percent to its GDP.<\/p>\n<p>The cooperation comes at a time when U.S. President Donald Trump\u2019s tariff war has roiled global markets. Although Nigeria\u2019s more than $4 billion in annual crude oil exports to the United States will be exempt from Trump\u2019s paused <a href=\"https:\/\/businessday.ng\/columnist\/article\/trumps-trade-war-upends-nigerias-economy-but-wheres-tinubu\/\">14 percent tariff<\/a> for the country, those tariffs will affect Nigerian agricultural exports such as cocoa. More importantly, Trump\u2019s trade war has caused oil prices to <a href=\"https:\/\/www.reuters.com\/markets\/commodities\/oil-price-drop-turns-up-heat-emerging-market-crude-exporters-2025-04-15\/\">plunge<\/a>, threatening revenue for Nigeria and other oil-exporting states.<\/p>\n<p>So far, Nigeria has been cautious in its approach to negotiating a trade deal with the United States. Nigerian President Bola Tinubu recently <a href=\"https:\/\/statehouse.gov.ng\/news\/what-president-tinubu-discussed-with-us-president-trump-advisor\/\">met<\/a> with Massad Boulos\u2014Trump\u2019s new Africa czar\u2014in Paris, where the two reportedly discussed forging closer economic ties. But Tinubu\u2019s <a href=\"https:\/\/www.thisdaylive.com\/index.php\/2025\/04\/20\/trump-tariffs-and-the-irony-of-governance\/\">critics<\/a> want him to be more proactive in negotiations.<\/p>\n<p>As Nigerian politicians come to see the United States as an unreliable trade partner, they are looking to create a plan for economic growth that is less vulnerable to Washington\u2019s whims.<\/p>\n<p>\u201cMost importantly, what is even destabilizing the market is inconsistencies in the way [Trump] also sends his policies. He moves today. Tomorrow, he reverses. So, it\u2019s been challenging to predict the next level,\u201d Farouk Ahmed, who oversees Nigeria\u2019s midstream and downstream oil regulatory body, <a href=\"https:\/\/punchng.com\/oil-slump-trump-tariffs-put-nigerias-economy-at-risk-fg\/\">told<\/a> reporters at a press briefing.<\/p>\n<p>After a sell-off sparked by Trump\u2019s tariffs, Nigeria\u2019s central bank <a href=\"https:\/\/www.sbmintel.com\/2025\/04\/the-week-ahead-facade\/\">released<\/a> nearly <a href=\"https:\/\/businessday.ng\/big-read\/article\/cbn-opens-dollar-tap-as-trump-tariffs-test-naira\/\">$200 million<\/a> into local markets earlier this month to stabilize its currency, the naira.<\/p>\n<p>Nigeria is also revising its economic strategy. \u201c[W]e are going back to the drawing board to look at our budget all over again,\u201d <a href=\"https:\/\/businessday.ng\/business-economy\/article\/fg-weighs-budget-reset-amid-trumps-tariff-turmoil\/\">said<\/a> Finance Minister Wale Edun, who drafted a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-01-24\/nigeria-to-tap-range-of-financial-instruments-in-2025-edun-says\">fiscal policy<\/a> in January based on oil being around $75 a barrel.<\/p>\n<p>The downstream effects of Trump\u2019s tariffs threaten Nigeria\u2019s economy as well. For instance, Indonesia\u2014which <a href=\"https:\/\/www.channelstv.com\/2025\/04\/16\/nigerias-oil-revenue-threatened-as-indonesia-may-cut-imports-in-favour-of-us\/\">imports<\/a> large quantities of crude oil from Nigeria\u2014plans to cut Nigerian imports and <a href=\"https:\/\/www.scmp.com\/week-asia\/economics\/article\/3307096\/move-avert-trumps-tariff-indonesia-raise-us-imports-us19-billion\">buy more<\/a> U.S. oil as a way to negotiate with Trump and avoid his proposed 32 percent tariff.<\/p>\n<p>Instead of sealing a trade deal with Washington<strong>, <\/strong>however, Abuja has so far prioritized broadening its economic partnerships elsewhere. It has sought greater ties with its former colonial power, the<a href=\"https:\/\/nairametrics.com\/2025\/03\/02\/yusuf-tuggar-to-travel-to-the-united-kingdom-to-enhance-nigeria-uk-business-ties\/\"> United Kingdom<\/a>, and nations within the <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-01-18\/nigeria-officially-joins-brics-to-boost-trade-investment\">BRICS group<\/a>, including <a href=\"https:\/\/apanews.net\/nigeria-attracts-14bn-e250m-investments-from-india-netherlands\/\">China<\/a>, India, and South Africa.<\/p>\n<p>But mostly, Nigeria has turned to other African nations. Trump\u2019s tariffs are \u201ca lesson for us that we need to trade among ourselves,\u201d Edun <a href=\"https:\/\/thenationonlineng.net\/edun-urges-resilience-intra-african-trade-over-reciprocal-tariff-regimes\/\">said<\/a>. \u201cWe need to be resilient.\u201d<\/p>\n<p>Last week, Tinubu <a href=\"https:\/\/www.proshare.co\/articles\/nigeria-signs-ecowas-tariff-offer-establishing-zero-duties-on-90-of-goods-traded-within-africa?menu=Business&amp;classification=Read&amp;category=Trade%20Investment\">committed<\/a> to removing duties on 90 percent of goods traded within Africa as part of a major push to <a href=\"https:\/\/www.focusonafrica.info\/nigeria-breakthrough-in-african-trade-with-african-continental-free-trade-area-afcfta-implementation\/\">accelerate<\/a> the implementation of the African Continental Free Trade Area, the world\u2019s largest free trade area.<\/p>\n<p>Nigeria has also quietly resumed talks on economic and security cooperation with junta-led Niger, which were paused after the latter country\u2019s 2023 military coup. Last week, Nigerian Foreign Minister Yusuf Tuggar <a href=\"https:\/\/www.barrons.com\/news\/nigeria-niger-foreign-ministers-meet-for-security-talks-443db9a2\">traveled<\/a> to Niamey to discuss, among other subjects, the planned 2,500-mile trans-Saharan <a href=\"https:\/\/www.eia.gov\/international\/content\/analysis\/countries_long\/Nigeria\/nigeria.pdf\">pipeline<\/a> to transport gas from Nigeria to Algeria via Niger.<\/p>\n<p>Like other commodity-exporting economies, Nigeria is less reliant on U.S. trade and therefore better insulated from Trump\u2019s tariff roller-coaster than many industrialized economies\u2014such as South Africa\u2014that export cars and machinery.<\/p>\n<p>\u201cYou really don\u2019t need a foreign policy for selling crude oil,\u201d Cheta Nwanze, the founder of Lagos-based political analysis firm SBM Intelligence, told <em>Foreign Policy<\/em>. \u201cOil is one of those things that are sanctions-exempt [under Trump\u2019s tariffs], so Nigeria doesn\u2019t need some coordinated meetings and trade discussions\u201d with the United States.<\/p>\n<p>Still, for decades, Nigeria did not invest in the infrastructure to diversify and build sustainable growth from markets beyond oil and gas. Nigeria\u2019s new agreement with South Africa is a major step forward as demand for lithium and cobalt increases amid the global energy transition. It\u2019s also a blueprint for inter-African innovation that is less reliant on Western nations.<\/p>\n<p>But, Nwanze warned, \u201cthere\u2019s a huge gap between intention and ability to enforce.\u201d If oil prices continue to drop due to Trump\u2019s policies, Nigeria\u2019s economic future will depend on its ability to reverse a decadeslong legacy of <a href=\"https:\/\/african.business\/2019\/08\/economy\/can-nigerias-cfta-move-undo-the-negative-legacy-of-protectionism\">trade protectionism<\/a> and fully embrace continent-wide free trade.<\/p>\n<hr\/>\n<h3>The Week Ahead<strong>\u00a0<\/strong><\/h3>\n<p><strong>Wednesday, April 23: <\/strong>French President Emmanuel Macron begins a two-day trip to Madagascar, which will host an Indian Ocean Commission summit on Thursday.<\/p>\n<p><strong>Wednesday, April 23, to Saturday, April 26: <\/strong>Chinese President Xi Jinping hosts Kenyan President William Ruto in Beijing.<\/p>\n<p><strong>Thursday, April 24:<\/strong> Ukrainian President Volodymyr Zelensky visits South Africa.<\/p>\n<p><strong>Friday, April 25:<\/strong> Macron visits Mauritius.<\/p>\n<hr\/>\n<h3>What We\u2019re Watching<\/h3>\n<p><strong>Kabila returns.<\/strong> The Democratic Republic of the Congo has <a href=\"https:\/\/www.aljazeera.com\/news\/2025\/4\/20\/dr-congo-suspends-ex-president-kabilas-party-over-alleged-m23-links\">banned<\/a> former President Joseph Kabila\u2019s People\u2019s Party for Reconstruction and Democracy and <a href=\"https:\/\/www.reuters.com\/world\/africa\/congo-suspends-former-president-kabilas-political-party-2025-04-20\/\">seized his assets<\/a> over his alleged ties with Rwanda-backed M23 rebels. Kabila, who denies the accusation, recently <a href=\"https:\/\/apnews.com\/article\/congo-goma-m23-rebels-kabila-33bdbf5714848ee5623c92aad3384eca\">returned<\/a> to the eastern Congolese city of Goma\u2014which was <a href=\"https:\/\/foreignpolicy.com\/2025\/01\/29\/rwanda-backed-rebels-capture-goma\/\">seized<\/a> by M23 in late January\u2014after 18 months of self-imposed exile in South Africa.<\/p>\n<p>Kabila took power 10 days after his father, former President Laurent-D\u00e9sir\u00e9 Kabila, was assassinated in 2001, and he refused to leave office when his term was set to expire in 2016. This culminated in deadly protests and, ultimately, Kabila\u2019s ouster in 2019.<\/p>\n<p>Kabila claims that he has returned home to help <a href=\"https:\/\/www.rfi.fr\/en\/africa\/20250411-fears-for-political-stability-as-joseph-kabila-plans-return-to-eastern-drc\">address<\/a> the nation\u2019s \u201cworsening security situation\u201d as fighting between the Congolese army and M23 has <a href=\"https:\/\/foreignpolicy.com\/2025\/02\/28\/rwanda-congo-invasion-africa-conflict\/\">escalated<\/a> in recent months.<\/p>\n<p><strong>Tanzanian demonstrations.<\/strong> Tanzania\u2019s main opposition party, Chadema, has <a href=\"https:\/\/www.barrons.com\/news\/tanzania-opposition-party-calls-for-court-demos-as-police-issue-ban-08a6b002\">called<\/a> on supporters to protest outside a courthouse where party leader Tundu Lissu will appear on treason charges on Thursday, April 24.<\/p>\n<p>Lissu was <a href=\"https:\/\/www.reuters.com\/world\/africa\/tanzania-opposition-party-says-its-leader-has-been-moved-different-prison-2025-04-19\/\">arrested<\/a> earlier this month after he called for Tanzanians to boycott general elections in October and <a href=\"https:\/\/www.bbc.com\/news\/articles\/c793qd2x7yzo\">argued<\/a> that members of the country\u2019s electoral commission should not be directly appointed by President Samia Suluhu Hassan. His party was subsequently banned from participating in the upcoming elections.<\/p>\n<p>Tanzania\u2019s election body said Chadema had failed to <a href=\"https:\/\/www.dw.com\/en\/tanzania-democracy-at-stake-after-chadema-election-ban\/a-72253079\">sign<\/a> an electoral code of conduct, but rights groups have <a href=\"https:\/\/www.amnesty.org\/en\/latest\/news\/2025\/04\/tanzania-stop-repression-of-opposition-leaders-and-immediately-release-tundu-lissu\/\">pointed<\/a> to the government\u2019s actions as an example of its intensifying crackdown on the opposition. The ruling Chama Cha Mapinduzi party has governed Tanzania for more than five decades.<\/p>\n<p><strong>Tunisian repression. <\/strong>Arbitrary jailing of critics is the linchpin of Tunisia\u2019s response to dissent, according to a new Human Rights Watch <a href=\"https:\/\/www.hrw.org\/news\/2025\/04\/16\/tunisia-arbitrary-detention-crushes-dissent\">report<\/a>. The government\u2019s crackdown has dramatically increased since President Kais Saied\u2019s <a href=\"https:\/\/foreignpolicy.com\/2022\/08\/04\/tunisia-kais-saied-democracy-arab-spring-success-story\/\">takeover<\/a> of state institutions in July 2021.<\/p>\n<p>As of January, more than 50 people were documented by the rights organization as being detained in Tunisia on political grounds, with many of them at risk of capital punishment.<\/p>\n<p><strong>Aid halted in Ethiopia.<\/strong> The World Food Program (WFP) has <a href=\"https:\/\/www.reuters.com\/business\/healthcare-pharmaceuticals\/malnutrition-treatments-halted-ethiopia-due-underfunding-wfp-says-2025-04-22\/\">suspended<\/a> treatment for 650,000 malnourished women and children in Ethiopia due to limited funds after donor nations, including the United States, cut aid. Washington has made exemptions to its aid freeze for the United Nations agency, but WFP says that it has received little U.S. aid for this year.<strong>\u00a0<\/strong><\/p>\n<hr\/>\n<h3>This Week in Tech<\/h3>\n<p><strong>Niger\u2019s solar embrace.<\/strong> Solar panels have been <a href=\"https:\/\/africa.businessinsider.com\/local\/lifestyle\/residents-in-niger-republic-explore-alternatives-as-nigeria-cuts-power-supply\/vzmlp6p\">booming<\/a> in Niger since neighboring Nigeria suspended power to the country as part of regional sanctions after its 2023 military coup.<\/p>\n<p>Nigeria has since restored energy exports, but they remain <a href=\"https:\/\/www.msn.com\/en-xl\/africa\/nigeria\/nigeria-cuts-power-supply-to-niger-republic-report\/ar-AA1D4ja1\">limited<\/a> as Abuja faces strains on its energy capacity at home. In the face of widespread power cuts, Niger has turned to solar energy, importing panels mainly from China. Last year, Niger\u2019s military government commissioned a $34 million solar <a href=\"https:\/\/www.africanews.com\/2023\/11\/27\/niger-under-sanctions-commissions-a-new-photovoltaic-power-plant\/\">power plant<\/a> to reduce reliance on Nigeria.<\/p>\n<p><strong>Musk not welcome.<\/strong> South Africa\u2019s biggest mobile operator, Vodacom, <a href=\"https:\/\/techpoint.africa\/news\/vodacom-starlink-ban\/\">said<\/a> last week that it supports the government\u2019s decision to prevent Elon Musk\u2019s Starlink internet services from operating in the country if the company does not comply with national Black Economic Empowerment laws.<\/p>\n<p>Musk has <a href=\"https:\/\/www.bbc.com\/news\/articles\/cly3d8gd8mno\">yet to apply<\/a> for South African licenses, citing the empowerment laws, which require at least 30 percent ownership by historically disadvantaged groups. One South African official, however, is <a href=\"https:\/\/www.reuters.com\/world\/africa\/south-african-lawmaker-accuses-minister-trying-change-law-musks-starlink-2025-04-07\/\">looking<\/a> to tweak the requirements for Starlink and other providers. If Starlink expanded into the country, then Vodacom would be one of its main competitors.<\/p>\n<p>\u201cWe believe in the importance of adhering to national regulations that promote inclusivity and redress historical inequalities,\u201d Vodacom said in a statement.<\/p>\n<hr\/>\n<h3>What We\u2019re Reading<\/h3>\n<p><strong>Big Tech\u2019s African workforce.<\/strong> New data shows that major tech companies outsource labor to workers in 39 African nations who perform content moderation and data input for artificial intelligence models.<\/p>\n<p>The research comes as Facebook\u2019s parent company, Meta, faces a lawsuit in Kenya over allegations of poor labor practices and accusations of amplifying hate speech, Stephanie Wangari and Gayathri Vaidyanathan <a href=\"https:\/\/restofworld.org\/2025\/big-tech-ai-labor-supply-chain-african-workers\/\">report<\/a> in <em>Rest of World<\/em>.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/foreignpolicy.com\/2025\/04\/23\/nigeria-economy-trump-tariffs-south-africa-mining-oil-afcfta\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to Foreign Policy\u2019s Africa Brief. The highlights this week: Nigeria seeks to reverse its legacy of trade protectionism, the Democratic Republic of the Congo bans an ex-president\u2019s political party, and Tunisia\u2019s crackdown on government critics intensifies. Sign up to receive Africa Brief in your inbox every Wednesday. Sign up to receive Africa Brief in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":{"0":"post-1128","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-politcical-news"},"_links":{"self":[{"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=\/wp\/v2\/posts\/1128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1128"}],"version-history":[{"count":0,"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=\/wp\/v2\/posts\/1128\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=\/wp\/v2\/media\/1129"}],"wp:attachment":[{"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/firearmupgrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}