Besides the shallow trend of Nigeria’s economic diversification, the trade war between the United States (U.S.) and China is increasing its susceptibility to shocks, given that domestic growth in the oil and gas sector has remained pressured in the last six months. The trade war, according to FXTM’s research analyst, Lukman Otunuga, is not only going to create global instability, but will impact growth and raise risk aversion, particularly against emerging markets, where Nigeria belongs.
Nigeria’s biggest trading partners are China and U.S., so the net impact of the trade war will surely comeback to Nigeria, through reduced business deals, with the attendant effects on economic recovery that has remained “fragile”. Meanwhile, FSDH Merchant Bank Limited has also reiterated that the economy will require more deliberate policy measures and engagements than the current responses to challenges to avert another recession and urgently. Guardian\Energy Mix
Pix: Kemi Adeosun, Nigeria Finance Minister