ASSESSING THE IMPACT OF U.S.A - CHINA TRADE WAR ON GLOBAL POLITICAL ECONOMY: IMPLICATIONS FOR NIGERIA'S ECONOMIC DEVELOPMENT

Research Problem: The U.S.-China trade war which began in 2018, has altered global trade dynamics, leading to a rise in commodity prices around the world. While its effects on the global political economy have been widely studied, there is a notable lack of attention to its impact on Nigeria’s economic development. This gap necessitates a critical assessment to understand the specific economic repercussions for Nigeria. Methods/Theory: The study relied on data from credible secondary sources, such as textbooks, peer-reviewed journals, and trade statistics obtained from online databases of reputable governmental agencies. Nevertheless. The study adapted the World Systems Theory which served as the analytical framework to examine the trade war dynamics and its effects on Nigeria. Results: Findings revealed that the U.S.-China trade war significantly increased Nigeria’s inflation rate for consumable goods imported from the U.S., increasing from 2% in 2020 to 8% in 2022. Additionally, Nigeria’s trade deficit with China expanded to ₦35.66 trillion between 2018 and 2024. Conclusion: The study concludes that the trade war adversly affected Nigeria’s economic development by accelerating inflation and increasing trade deficits, emphasizing the need for strategic measures to alleviate its effects and promote sustainable economic growth in Nigeria. Key Contribution to Knowledge: This study fills a significant gap in recent scholarship by providing a detailed, evidence-based analysis of the U.S.-China trade war’s specific consequences for Nigeria. It offers valuable insights into the economic repercussions, contributing to a deeper understanding of global trade dynamics' impact on developing economies. Recommendation: The Nigerian government should prioritize developing infrastructure to boost local production, diversify its economy, and adopt a balanced foreign policy to reduce its reliance on the warring superpowers amidst global trade challenges.