The federal government says the recent 14 percent tariff imposed on Nigeria’s exports to the United States (US) presents destabilising challenges to price competitiveness and market access in the non-oil sector.
On April 2, President Donald Trump announced sweeping global tariffs on all imports into the country, placing 14 percent on Nigeria.
In a statement on Monday, Jumoke Oduwole, minister of industry, trade, and investment, said non-oil products may now experience disruptions due to the new tariffs.
“While oil has long dominated Nigeria’s exports to the US, non-oil products—many previously exempt under AGOA—now face potential disruption,” the statement reads.
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“A new 10% tariff on key categories may impact the competitiveness of Nigerian goods in the U.S.
“For businesses in the non-oil sector, these measures present destabilising challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda.
“While these developments potentially impact global trade negatively, under the Administration of President Bola Ahmed Tinubu GCFR, and the Renewed Hope Agenda, Nigeria remains firmly committed to building economic resilience and accelerating export diversification”.
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Oduwole said the federal government considers the US “a valued trade and investment partner, bound by shared values and mutual economic interests”.
“In response to the recent tariff announcements, Nigeria remains actively engaged in consultations with U.S. counterparts and the WTO, approaching evolving trade dynamics with pragmatism and a commitment to mutually beneficial solutions,” the minister said.
‘PRESIDENT TINUBU REMAINS RESILIENT TO ATTRACT INVESTMENTS INTO NIGERIA’
Since May 2023, the ministry said Tinubu has remained actively committed to attracting and retaining “much-needed” investments from Nigeria’s new and old allies.
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“The FGN is implementing a range of interventions in policy, financing, infrastructure, and diplomacy to help Nigerian businesses remain competitive amidst regional and global tariff hikes, including expanding alternative market access opportunities and ensuring off-take diversification to reduce and mitigate trade risks,” the statement further reads.
“Nigeria’s exports to the United States over the last 2 years has consistently ranged between $5–6 billion annually. A significant portion—over 90%—comprises crude petroleum, mineral fuels, oils, and gas products.
“The second-largest export category, accounting for approximately 2–3%, includes fertilizers and urea, followed by lead, representing around 1% of total exports (valued at approx $82 million).
“Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than 2% of our total exports to the U.S.”
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In addition, the ministry said small and medium-sized enterprises (SMEs) that build their business models around the African Growth and Opportunity Act (AGOA) exemptions will face the pressures of rising costs and erratic buyer commitments.
The development, according to the statement, strengthens Nigeria’s resolve to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to match global standards and enhance market acceptance into more economies across the globe.
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“It also signals for Africa—and Nigeria in particular—the urgent need to enhance intra-African trade through the African Continental Free Trade Area (AfCFTA), reinforcing the case for Nigeria’s accelerated implementation of the AfCFTA, deepening regional integration, and leveraging frameworks like the Pan-African Payment and Settlement System (PAPSS) to lower trade costs and promote intra-African trade,” the ministry said.
Commenting on the development, Oduwole said the trade ministry is approaching the moment “with pragmatism and purpose—turning global and regional trade policy challenges into opportunities to grow our non-oil export footprint and build a more resilient economy”.
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