Abuja, April 14, 2025 – Naija247news – Renowned economist and Chief Economic Strategist at the ECOWAS Commission, Prof. Ken Ife, has raised the alarm that the new protectionist tariff policies introduced by U.S. President Donald Trump could unleash severe pressure on Nigeria’s fiscal and monetary policy frameworks.
Thank you for reading this post, don't forget to subscribe!Speaking at the 36th Finance Correspondents and Business Editors Association of Nigeria (FICAN) seminar in Abuja, themed “Banking Recapitalisation Towards a One-Trillion Dollar Economy”, Ife said Nigeria’s banking sector must brace for deeper shocks driven by global economic disruptions.
According to Ife, the Trump-led tariff regime signals a seismic shift reminiscent of the 1930s, warning that “fiscal policy will be desecrated,” while monetary, trade, and industrial policies would be severely tested.
“We are staring at a meltdown. Nigeria had 89 banks in 1993, which were reduced to 25 after the 2005 recapitalisation. Today, the need for another recapitalisation is even more urgent,” he stated.
Prof. Ife lamented that the economic ripple effects of Trump’s trade protectionism could derail Nigeria’s push toward a one-trillion-dollar economy, warning of rising unemployment, slower growth, and policy distortions.
“Trump is dreaming of a 1930s America, when 80% of its revenue came from tariffs. Today, that figure is just 4%. The lesson is clear—when tariffs are removed, global trade flourishes. Trade has grown 4,000 times since 1945, with America as the biggest beneficiary,” he said.
Citing America’s global economic dominance, Ife said, “Despite being only 4% of the world’s population, the U.S. controls 13% of global trade. But 80% of this is in services, not goods. Manufacturing is just 10% of America’s GDP, while 60% is services.”
He added that the U.S. accounts for 25% of global GDP, 60% of global debt denominated in dollars, and 84% of all global financial transactions.
However, Ife noted that America’s financial supremacy is being challenged by China, citing the 2018 IMF inclusion of the Yuan in the currency basket, which cleared the path for countries to reduce dependency on the U.S. dollar.
“The game has changed. With China rising, America’s grip is weakening,” he declared.
Turning to domestic concerns, Prof. Ife warned that dwindling oil prices—now hovering at $60 per barrel—would increase pressure on the Central Bank of Nigeria (CBN) to meet the government’s revenue demands and service external debt obligations.
He urged the apex bank to stand firm and act decisively to safeguard Nigeria’s financial system amid the looming global turbulence.
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