The Nigerian Federal Government has responded to the recent imposition of a 14% tariff on Nigerian exports by the United States, a measure enacted by President Donald Trump who cited Nigeria’s trade surplus as justification.
In a statement issued on Sunday by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the government acknowledged that while oil has historically been Nigeria’s primary export to the US, non-oil products, many of which previously benefited from exemptions under the African Growth and Opportunity Act (AGOA), now risk being negatively affected.
Dr. Oduwole affirmed the government’s dedication to lessening the impact of these tariffs while also working to speed up the diversification of Nigeria’s economy, noting that the new 10% tariff on significant product categories could reduce the competitiveness of Nigerian goods in the American market.
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“For businesses in the non-oil sector, these measures present destabilizing challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda.
“SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments,” it stated.
The statement further highlighted that Nigeria’s yearly exports to the United States have typically ranged from $5 billion to $6 billion in the past two years, with crude oil and related fuels making up over 90% of this amount.
It pointed out that non-oil exports, such as fertilizers, urea, lead, and agricultural products, represent less than 5% of the total exports.
The newly imposed tariffs have the potential to negatively affect the ability of Nigerian businesses in value-added industries and agro-processing to compete in the US market.
Consequently, the Nigerian government is viewing this development as a chance to expedite the diversification of its exports and improve adherence to global quality standards.
“We are approaching this moment with pragmatism and purpose—turning global trade challenges into opportunities to grow our non-oil export footprint and build a more resilient economy,” Oduwole said.
Dr. Oduwole also stated that the Tinubu administration has implemented various policy, financial, and infrastructural initiatives to support Nigerian businesses in adapting to the new trade environment.
These measures include exploring and expanding export markets beyond the United States, improving quality control and traceability for Nigerian products, and strengthening trade diplomacy to negotiate more advantageous trade agreements.
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