The Federal Government has said the newly imposed tariffs by US President Donald Trump on Nigerian exports, will have adverse effects on the economy.
Trump had announced that countries seeking to sell goods to the United States would now face taxes as high as 50 per cent.
The announcement was met with widespread condemnation by the European Union and exporting nations.
Minister of Industry, Trade and Investment, Jumoke Oduwole, said in a statement that many of Nigeria’s oil and non-oil exports are set to face adverse effects and that the tariff could potentially weaken the competitiveness of Nigerian products in the United States market.
The minister said Nigeria’s exports to the United States have averaged $5–6 billion annually in the last two years.
Oduwole noted that the new tariff on key categories could negatively affect the competitiveness of Nigerian goods in the United States market and destabilise businesses in the non-oil sector, affecting both price competitiveness and market access.
“Nigeria’s exports to the United States in the last two years have consistently ranged between $5 and $5–6 bn annually.
“A significant portion—over 90 per cent —comprises crude petroleum, mineral fuels, oils, and gas products. The second-largest export category, accounting for approximately 2–3 per cent, includes fertilisers and urea, followed by lead, representing around one per cent of total exports (valued at approx. $82m),” the minister stated.
According to the minister, “Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than two per cent of our total exports to the U.S.
“While oil has long dominated Nigeria’s exports to the US, non-oil products—many previously exempt under AGOA—now face potential disruption.
“A new 10 per cent tariff on key categories may impact the competitiveness of Nigerian goods in the U.S. For businesses in the non-oil sector, these measures pre-destabilise challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda.”
She further noted that SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments.
Oduwole, however, said the development strengthens Nigeria’s resolve to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards and improve market acceptance in more economies across the globe.
