The ongoing trade war between the United States and China is poised to have far-reaching consequences for Nigeria, Prof. Ken Ife, a distinguished economist and global trade analyst, has warned.
In an interview with Daily Trust, Prof. Ife shed light on how the rising tariffs between the two economic giants could disproportionately affect African nations, particularly Nigeria.
"China has responded to America by raising their tariff to 85%, and Donald Trump has further inflicted an additional 50%, now raising U.S. tariffs to 125%. And that is going to continue to go on because China says 'Bring it on,"' Prof. Ife stated.
He emphasised the relentless nature of the trade war, predicting further tensions as both sides maintain their retaliatory measures.
Prof. Ife also pointed out the severe disruption to global trade, citing preliminary estimates from the World Trade Organization (WTO). "The WTO has mentioned that both the trade between China and America could melt down by as much as 90%," he explained.
He warned that the resulting shockwaves would be felt worldwide, adding, "African economies, particularly Nigeria, which are import dependent, will be disproportionately affected."
Urging a shift in trade priorities, Prof. Ife advocated for intra-African trade as a sustainable solution. "I believe that 80 to 90% of whatever any African country wants to import abroad can be sourced in Africa. When you source in Africa, you can utilize the Afrik Zim Bank Pan Africa Payment Settlement System so that no dollar comes into this," he suggested.
Prof. Ife also pointed to the need for African countries to reduce excessive borrowing to finance imports, noting, "This excessive borrowing to pay for imports and all of that is just not sustainable."
As the US-China trade war continues, Prof. Ife stressed the urgency for Nigeria to take proactive measures. "Everything that happens globally tends to affect us disproportionately because our economy is import dependent," he remarked, calling for strategic efforts to strengthen intra-African trade and boost regional economic growth.
