The federal government has acknowledged that several of Nigeria’s oil and non-oil exports will face adverse effects due to the newly imposed tariffs by US President Donald Trump on Nigerian exports. This tariff is expected to disrupt trade relations and potentially weaken the competitiveness of Nigerian products in the US market.
Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, stated, “Nigeria’s exports to the United States in the last two years have consistently ranged between $5 and $5–6 billion annually.” The exports comprise mainly crude petroleum, mineral fuels, oils, and gas products, which account for over 90% of the total exports.
Other export categories include:
– Fertilizers and Urea: accounting for approximately 2-3% of total exports
– Lead: representing around 1% of total exports, valued at approximately $82 million
– Agricultural Products: live plants, flour, and nuts, accounting for less than 2% of total exports
The new 10% tariff on key categories may impact the competitiveness of Nigerian goods in the US market. Dr Oduwole noted, “A new 10% tariff on key categories may impact the competitiveness of Nigerian goods in the US. For businesses in the non-oil sector, these measures predestabilise challenges to price competitiveness and market access.”
Economic experts warn that the policy will raise prices of goods and services for consumers, weaken the standard of living, slow down manufacturing activities, and hinder international trade. This, in turn, may weaken demand for Nigerian oil in the US, one of its key markets.
In response, Nigeria aims to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards. Dr. Oduwole emphasized, “This development strengthens Nigeria’s resolve to boost its non-oil exports.”
The US-Nigeria trade relationship is significant, with Nigeria exporting an estimated $277 billion worth of goods to the US under the African Growth and Opportunity Act (AGOA) since its inception in 2000. The newly imposed tariffs could potentially disrupt this trade, affecting Nigerian businesses and the economy
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