The Business NG - March 10, 2025

In this issue

As global trade tensions continue to escalate, financial experts suggest that Nigeria and other emerging markets could benefit from a weakening U.S. dollar. With rising U.S. tariffs and retaliatory measures from major economies like China, Mexico, and Canada, the dollar’s value is showing signs of decline, potentially creating opportunities for commodity-exporting nations such as Nigeria.

In a dramatic move this week, U.S. President Donald Trump imposed new tariffs, raising duties on goods from Mexico and Canada by 25% and China by 20%. In response, China has retaliated with an additional 15% tariff on key U.S. imports, including soybeans, beef, and pork. Canada has also introduced its own countermeasures. The resulting trade war is expected to slow down U.S. economic growth, triggering ripple effects across global markets.

Financial experts believe that this economic shift could work in Nigeria’s favor. According to Samson Esemuede, Managing Director and Chief Investment Officer of Zrosk, a relative slowdown in U.S. growth could prompt investors to redirect capital from the U.S. to emerging markets.

“A weakening dollar benefits frontier and emerging markets like Nigeria,” Esemuede stated during an appearance on the Drinks and Mics podcast. “If the dollar continues to weaken, Nigeria could see increased capital inflows, improved export earnings, and a generally favorable economic outlook.”

Arnold Dublin-Green, Chief Investment Officer at Cordros Capital, shared similar sentiments. “A weak dollar improves commodity prices, which is great for Nigeria as an oil-dependent economy. It also eases external debt servicing, making things better for emerging markets,” he explained.

As global economic dynamics shift, Nigeria's ability to capitalize on a weaker dollar could be a critical factor in shaping its economic future.