Finance Minister Wale Edun has announced that the Nigerian government will focus on boosting non-oil revenue as a strategy to mitigate the impact of recently imposed trade tariffs by President Donald Trump
Edun also stated that the Economic Management Team (EMT) will convene to assess the potential effects of the 14 percent tariff on Nigerian exports to the United States.
Following this assessment, the EMT will formulate recommendations to lessen the tariff’s impact on Nigeria’s economy.
Speaking at a Ministry of Finance Incorporated event yesterday, Monday, Edun explained that while Nigeria’s primary vulnerability lies in a potential drop in oil prices, the government is increasing efforts to enhance oil production and significantly grow non-oil revenue streams.
The Trump administration recently implemented tariffs ranging from 10 to 65 percent on various countries globally, with Nigeria facing a 14 percent tariff on its exports to the United States.
However, Edun noted that the US, the initiator of these tariffs, announced on April 2nd an exemption for mineral exports, including oil.
“Therefore, the main potential impact on Nigeria is the oil price effect. The economic management team under President Bola Ahmed Tinubu is responsible for analyzing different potential scenarios and advising the government accordingly, among other things,” Edun stated.
He acknowledged the high level of global uncertainty, making it difficult to predict the exact outcomes of the announced tariffs, including potential delays, reversals, or full implementation.
Edun clarified that the government is not currently reviewing the budget but is actively examining various scenarios and options to provide informed advice.
Earlier in his address at the event, which focused on improving corporate governance in state-owned enterprises to enhance value creation, Edun highlighted plans for potential budget adjustments, expenditure prioritization, and innovative non-debt financing strategies.
He pointed out that Nigeria has maintained a trade surplus with the US over the past three years (2022-2024), with exports reaching N1.8 trillion, N2.6 trillion, and N5.5 trillion respectively.
Notably, oil and mineral exports constituted 92 percent of this trade, totaling N5.08 trillion, while non-oil exports accounted for only N0.44 trillion.
“Consequently, the tariff’s direct impact on our export volume is expected to be minimal if we sustain our current levels of oil and mineral exports. The primary risk to Nigeria lies in a potential decrease in oil prices. To counter this, we are intensifying efforts to increase crude oil production. Simultaneously, we are focusing on boosting non-oil revenue collection through the Federal Inland Revenue Service and the Nigeria Customs Service, exploring budget adjustments and prioritization where feasible, and pursuing innovative non-debt financing strategies,” the minister explained.
Regarding MOFI’s emphasis on good corporate governance, Edun stressed its heightened importance amid global economic uncertainties, financial vulnerabilities, and the need for structural reforms.
He emphasized that the link between economic performance and corporate governance is fundamental to achieving sustainable development, investor confidence, and institutional integrity.
He noted the critical role of State-Owned Enterprises (SOEs) in Nigeria’s economy across key sectors but highlighted that their potential for economic expansion, job creation, and industrial growth has often been limited by inefficiencies, poor financial management, and governance issues.
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