Former Deputy Governor of the Central Bank of Nigeria, CBN, Kingsley Moghalu has suggested that being sidelined by United States President, Donald Trump is exactly what Africa needs.
Moghalu said that “we need to wake up and stop moaning about
what Trump “means for Africa”.
The ex-CBN Deputy Governor, in a post on his X handle on
Sunday, maintained that Africa needs to take its destiny into its own hands and
chart its own course.
“Being sidelined by Trump is exactly what Africa needs. We
need to wake up and stop moaning about what Trump ‘means for Africa’.
“Africa needs to take its destiny into its own hands and
chart its own course. Just tired of the ‘what Trump means for Africa’ discourse
of dependency,” Moghalu posted on X.
Meanwhile, Dr Samson Simon, an Economist of the ARKK Economics
and Data limited in a chat warned that Nigeria could witness less FX earnings
and reduced government revenue under Trump’s administration.
The statement comes as Trump has signed an executive order
upon his return to the White House declaring an energy emergency.
Simon said that America drilling oil could mean a glut in
oil supply and loss of OPEC market share, with Nigeria being a member of the
bloc.
According to the economic expert, Nigeria tends to do badly
when price of crude oil on the international falls, adding that the country
could see less FX earnings and reduced government revenue.
“America drilling oil could mean a glut in oil supply and
loss of OPEC market share (Nigeria being a member of the bloc) with a
concomitant fall in the international price of oil.
“And when the price of crude oil on the international falls,
Nigeria tends to do badly. As the fall means less FX earnings and reduced
government revenue.
“The consolation is that before Trump makes America to rev
up its oil production, there would be a lag – meaning that the impact may not
be felt immediately,” Simon said.
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Nigeria should use crude oil fall in prices to fuel other sectors of its economy to generate more revenue. The country is witnessing more growth in refineries coming upstream and this will enable the country to have more petrol reserves, and also push prices downward. He could also sell finished petroleum products to neighbouring countries and use the rest to satisfy the growing population in the country. If the U.S. wants to drill more oil, it means that there’s internal market oil tensions in the U.S.. And the only way he can bring down tensions and force prices down, is to drill for more oil and also, reduce his strategic reserves. Secondly, as most OPEC countries can now transact oil business in their local currencies, instead of dollar, I think, America will be in a delicate situation because petrodollar is not only currency which can be used to buy oil. It is a huge downside if dollar dominance is taken away from the International Monetary System.
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