AS Nigeria steps up efforts to implement its N54.9 trillion 2025 budget, experts have expressed fears that President Donald Trump’s energy policy, targeted at increasing oil output would impact the $75 per barrel target on which the budget is based, inflation and Diaspora remittances, among others.
With his ”Drill Baby Drill” energy policy, President Trump said America would invest in fossil energy resources, and boost oil and gas output in order to meet its domestic needs, a development analysts said could lead to over-supply and low prices in the international market.
Reacting, the director/CEO, Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, said President Trump’s policy would hinder the realization of Nigeria’s $75 per barrel 2025 budget target, escalate high inflation while stalling Diaspora remittances.
He said: “USA has been the largest oil producer globally for the past six years, noting that in 2023, it produced an average of 21.91 million barrels per day, which is about 22% of the global oil production.
“The USA is positioned to influence global oil output and prices, especially the Trump administration has committed to increasing oil output to reduce energy prices in the USA and globally.
“The country also has the global diplomatic clout to influence the Organisation of Petroleum Exporting Countries, OPEC, oil output as President Trump has already signed an Executive Order creating a National Energy Dominance Council to drive the country’s energy dominance agenda.
“The Trump administration is committed to moderating the current global geopolitical tension, especially the Russian-Ukraine war, and possibly the Israeli Hamas war.
“If Trump succeeds in ending the war, especially the Russian-Ukraine war, the prospects for growth in global oil output would be considerably heightened as Russia supplies about 10 mbd of oil to the global oil market.”
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