The Spring Meetings of the International Monetary Fund (IMF) and the World Bank will hold in Washington this week amid uncertainties over global trade and multilateralism in the face of considerable disruptions caused by the Donald Trump administration’s trade policies.
The meetings will hold against the backdrop of the uncertainty that clouds global trade due to the disruptions caused by the tariff war between the United States and China.
|
|
The tariff war reached its crescendo earlier in the month following the decision by Mr Trump to slap a 134 per cent tax on Chinese imports as part of his “Liberation Day” that set a minimum 10 per cent levy on nearly all of America’s trading partners.
Beijing retaliated by hiking its levies on imports of United States’ goods to 125 per cent, hitting back at Mr Trump’s decision to single out the world’s second biggest economy for higher duties.
|
|
|
|---|
Mr Trump consequently announced a 90-day pause on the reciprocal tariffs imposed on 60 countries, including Nigeria, with the exception of China, but kept the 10 per cent baseline tariff in place for all countries.
The US president argued that the import taxes will encourage US consumers to buy more American-made goods, increase the amount of tax raised, and lead to major investments in the country, although critics have faulted these assumptions.
Although the IMF has 189 member countries, the United States holds sway over significant decisions made by the multilateral body. The most important decisions require 85 per cent of the votes, and the US has 16 per cent of the votes – a veto.
On Monday, the World Bank/IMF meetings, involving the world’s finance ministers and central bank governors, begin against the background of these disruptions. The IMF’s managing director, Kristalina Georgieva, earlier warned that the trade tariff policy poses “a significant risk to the global outlook”.
A former Nigerian finance minister and the Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, also warned that the United States’ declaration of tariffs on several economies could lead to a 1 per cent contraction in global merchandise trade volumes this year.
The conference will open with opening remarks from Gita Gopinath, first deputy managing director of the IMF, and conclude with remarks by Jean-Paul Servais, Chair of IOSCO.
Also expected to lead discussions at the meetings are Ajay Banga, president of the World Bank Group; Michelle Jeria, former president of Chile; Tharman Shanmugaratnam, president of the Republic of Singapore; Christina Williams of Voice of Youth; Nonkululeko Nyembezi, chairman, Standard Bank Group; Anthony Tan, Group CEO and co-founder of Grab; Rania Al Mashat, minister of Planning, Economic Development & International Cooperation, Egypt; Douglas Peterson, special advisor, S&P Global; Dilhan Pillay Sandrasegara, executive director and CEO, Temasek Holdings, and Nicola Galombik, executive director of Yellowwoods and also a founder and board member of the Harambee Youth Employment Accelerator.
Nigerian Outlook
The meetings would also allow the Nigerian finance minister and governor of the nation’s Central Bank to negotiate with investors and strengthen relationships with other multilateral organisations amid the global uncertainty.
Last week, the IMF said that the economic reforms undertaken by Nigeria since 2023 have significantly improved the country’s capacity to withstand external economic shocks. Its observation was contained in the 2025 Article IV Consultation report, which followed a visit by an IMF team led by Axel Schimmelpfennig, the Fund’s mission chief for Nigeria, who held discussions with key stakeholders in Lagos and Abuja between April 2 and April 15.
Earlier in the month, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the country will not be severely affected by the United States’ decision to impose a tariff on certain imports from countries without a trade agreement, due to the dominance of crude oil and mineral products in its US -bound exports.
“It’s not too bad,” Mr Edun said at the inaugural Corporate Governance Forum organised by the Ministry of Finance Incorporated in Abuja. “Oil minerals are excluded by America from being in any way sanctioned with tariffs.”
A major pressure point, however, remains: with crude oil prices plummeting in recent weeks, the nation’s budgetary provisions—pegged at crude oil benchmark of $75 per barrel—could be disrupted ahead of the year.
READ ALSO: Why the 2025 IMF/World Bank spring meetings matter more than ever, By Chaste Inegbedion
Oil prices touched below $70 a barrel earlier in the month as Brent is expected to hover around $60 a barrel in the second half of the year. Goldman Sachs estimated that Brent could drop to the low-to-mid $60s by the end of 2026 should OPEC and allies increase supply.
The Nigerian representatives are, therefore, expected to negotiate and hold discussions with partners and investors on these concerns and what it means for the nation’s fiscal outlook.
PREMIUM TIMES’ Business Editor, Oladeinde Olawoyin, is in the United States’ capital to report details of these developments and many more.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
![Allen Onyema Chairman/CEO of Air Peace Limited. [PHOTO CREDIT: Official Facebook page of AirPeace]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2022/03/allen.jpg?fit=960%2C640&ssl=1)
