The positive economic gains Nigeria’s economy is recording may be halted by the rift with the President of the United States of America (USA), Donald Trump, who has declared Nigeria a ‘Country of Particular Concern’.
A “Country of Particular Concern” (CPC) is a nation officially designated by the U.S. government for having engaged in or tolerated “particularly severe violations of religious freedom,” as defined by the International Religious Freedom Act of 1998.
An Economist, Paul Alaje, stated this while speaking on the forthcoming 2025 edition of the Paul Alaje Colloquium slated for November 15, 2025, in Abuja.
His words: “We can see what is happening at the Nigerian Stock Exchange even when no bomb has been thrown at Nigeria. No visa ban has been imposed on Nigeria. But there is a relative panic. So, our job as Nigerians is to enforce confidence. This is the time for us to speak with one voice. People thought it was just a tweet coming from an American president, but what happened shortly after? That singular tweet sent signals to the business community that Nigeria is unsafe for investment. The ongoing brickbats will have implications for employment, inflation, and poverty. It will have grave implications on almost all the macroeconomic behaviour, including the gross domestic product.”
He also lauded economic stability that has been recorded in the last few months, saying, “What stability can do is to boost investors’ confidence.
Foreign reserve is growing and if the government can increase investment in the public sector, which includes roads, rails and create a conducive environment for business to thrive, Nigeria will lead the way. The good news here is that we are seeing relative stability. We have also seen that the exchange rate has largely stabilised. Now, stability does not mean prosperity, but stability can lead to prosperity.”
He noted that the economic stability and investment in the social sector that is happening at the national level must be replicated at the subnational level by the state government to have the expected impacts.
He added, “The impacts of any economic policies are felt more at the subnational level because the majority of Nigerians reside in local communities that are closer to state governments. The Federal Government must ensure real autonomy of the local councils to drive development agendas at the lowest level, where the real people reside. Bottom-up development that delivers development happens at the local level.”
Alaje further argued that despite Nigeria being the fourth-largest economy in Africa, it stands at a decisive crossroad.
“Despite its human and natural endowments, the nation continues to grapple with rising poverty levels, weak institutions, and uneven economic opportunities. The time has come to examine why the cycle persists and how deliberate policy, innovation, and governance reforms can lift millions out of multidimensional poverty. This colloquium seeks to confront these issues head-on with data-driven dialogue and actionable ideas,” he said.
Alaje argued that the theme, ‘Breaking the cycle: How Nigeria can lead Africa from poverty to prosperity,’ is timely as Africa navigates a changing global economic landscape marked by shifting trade flows, climate imperatives, and digital disruptions.
