The United States Trade Representative (USTR) stated on Monday that Nigeria’s ban on importing 25 categories of products negatively affects American exporters, particularly those dealing in agriculture, pharmaceuticals, beverages, and consumer goods.
According to a statement on the USTR’s X platform, Nigeria’s import restrictions on items such as beef, pork, poultry, fruit juices, medications, and alcoholic beverages limit the access of U.S. products to the Nigerian market and reduce potential export opportunities.
The USTR emphasized that “These policies create significant trade barriers that lead to lost revenue for U.S. businesses looking to expand in the Nigerian market.”
This reaction from the USTR comes at a time of increasing trade tensions due to the sweeping tariffs recently imposed by the previous US administration on several countries, including a 14% tariff on Nigerian exports.
Following the impact of these global trade tariffs, Nigerian stocks experienced their most significant drop in recent times on Monday.
Investors lost approximately N659 billion as the Nigerian Exchange’s All Share Index (ASI) fell by 1.23%, marking its largest single-day decline this month.
Shares of companies like Oando and Honeywell Flour Mills were among the biggest losers.
Consequently, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and the total value of listed stocks decreased, bringing the Nigerian market’s year-to-date return down to +1.25%.
Other countries, such as China, have already indicated their intention to retaliate against the imposed tariffs.
China stated its commitment on Tuesday to “fight to the end” against threatened new tariffs by the US, further escalating the ongoing trade war that has already caused significant losses in global markets.
In response to these developments, Nigeria’s Minister of Finance, Wale Edun, announced on Monday that the Federal Government plans to boost non-oil revenue to cushion the adverse effects of the tariffs.
Edun also assured that the Economic Management Team (EMT) would meet to evaluate the likely impact of the 14% tariff on Nigerian exports to the US and subsequently propose measures to mitigate its effect on the national economy.
Speaking at an event on Monday, Edun suggested that while Nigeria’s primary risk might be a fall in oil prices, the government is intensifying efforts to increase oil production and expand non-oil revenue sources.
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