An economist, Dr. Muda Yusuf has declared that there may be significant increase in United States of America oil production which may depress oil prices in the global market.
He said the USA may put pressure on major oil producers including OPEC to boost production in order to reduce energy cost, adding that current sanctions on Russia may be lifted to pave way for improved production.
Dr Muda made the assertion while at the webinar hosted by Nigerian NewsDirect Newspaper, themed: Nigeria’s Economic Outlook 2025: Trends, challenges, and opportunities for growth,
He noted that a looming trade war between the USA and its trading partners may depress the global economy and reduce oil demand.
The economist averred that drop in global oil price has implications on government revenue and forex earnings, stressing that easing of geopolitical tension may hit global oil price, especially the Russian/Ukraine war.
He added that the depressed global oil price may affect forex inflow and create pressure for the naira, noting that looming trade war could strengthen the US economy and make dollars stronger while a stronger dollar may result in weaker naira.
Dr Muda said that inflationary pressure resulting from Trump tariff policy may trigger a new wave of monetary tightening in the US resulting in hike in interest rate and possible reversal of portfolio flows from emerging economies.
He noted that migration policy may depress remittances from the USA.
Speaking on 2025 business risk in Nigeria, Dr Muda stressed that there will be forex volatility, interest rate and inflation risk.
He noted that there would be financial and monetary, regulatory, insecurity and political risks.
He called for stakeholders’ engagement to reduce negative effects of the ongoing reforms in the economic sector.