President Bola Ahmed Tinubu’s administration has expressed its ambition to grow Nigeria’s economy into a trillion-dollar powerhouse.
While some skeptics view this goal as unattainable, given the country’s multifaceted challenges—such as an overreliance on oil and efforts to diversify the economy—there is still potential for success.
The Return of Trump
The resurgence of Donald Trump as U.S. president, with his protectionist and isolationist policies, adds another layer of difficulty to Nigeria’s path to economic growth. Trump’s “America First” stance was evident during his first presidency, marked by actions like launching a trade war with China, renegotiating trade agreements with Mexico and Canada, and raising tariffs on imports. The Biden administration sought to reverse these moves, aiming to preserve the U.S.’s global leadership.
Trump’s return to office is a reassertion of his isolationist approach. On his first day in office, he signed numerous executive orders, including withdrawing from the Paris Climate Agreement, exiting the World Health Organization, and investigating U.S. trade deficits—indicating the possibility of increased tariffs and another trade conflict, particularly with China, Canada, and Mexico. Trump’s focus on boosting U.S. oil and gas production and limiting immigration is also part of his broader agenda.
Challenges to Nigeria’s $1 Trillion Goal
Many of Trump’s policies may hinder Nigeria’s economic ambitions. Increased U.S. oil production could drive global oil prices lower, negatively impacting Nigeria’s revenue from this sector, which is a significant contributor to the nation’s economy. Furthermore, Trump’s emphasis on strengthening the dollar could exacerbate inflationary pressures on the naira, particularly as Nigeria relies heavily on imports. If his planned tax cuts lead to tariffs and higher inflation in the U.S., foreign direct investment in emerging markets like Nigeria could dwindle, slowing economic growth.
Tapping into the Potential of Nigerians Abroad
Despite the challenges posed by Trump’s return to the White House, Nigeria remains in a strong position to achieve its economic goals. One key opportunity lies in leveraging the Nigerian diaspora, one of the most vibrant and influential globally. Nations like India, China, and Israel have successfully harnessed their diasporas to drive economic transformation, and Nigeria can follow suit.
Rather than viewing the “japa” trend—Nigerians relocating abroad—as a negative phenomenon, Nigeria should capitalize on the benefits of a globally connected population. The Nigerian Diaspora Commission (NiDCOM) reported that diaspora Nigerians spent over N60 billion during the recent “Detty December,” when many return to Nigeria for the holidays. This financial power, coupled with the technical expertise and global networks of Nigerians abroad, presents a significant opportunity for investment and development.
Maximizing Diaspora Contributions
Nigerians living abroad have the financial resources, technical skills, and international experience to make a meaningful impact on Nigeria’s economy. The government can implement policies that attract these resources back to the country.
For instance, Nigeria could form partnerships with host countries like the U.S., U.K., and Canada to create opportunities for skills development and circular migration. Additionally, the government can collaborate with these countries to enhance the welfare and professional growth of Nigerians abroad, making them more likely to invest in Nigeria’s future.
Nigeria can also support diaspora entrepreneurs looking to establish businesses in the country. This support could include access to land, financing, and simplified business registration processes. Like India and China, Nigeria can facilitate joint ventures between local businesses and diaspora entrepreneurs, fostering growth in key sectors.
Harnessing Diaspora Power for Growth
Further steps could include offering tax incentives for remittances, providing venture capital to local startups, and promoting knowledge transfer through mentorship programs. The diaspora can also contribute to the development of Nigeria’s stock market, real estate, and other investment avenues.
By tapping into the immense potential of its diaspora, Nigeria could unlock billions in investment, spur technological and knowledge transfer, and accelerate development in vital industries. With the right policies, Nigeria can turn its trillion-dollar economic goal into a reality.
