Providing what could be regarded as the first official response three days after the announcement, the Federal Government has admitted that US President Donald Trump’s newly imposed tariffs will adversely affect several of Nigeria’s oil and non-oil exports.
While several governments of the world had been reacting and bracing for the much-vaunted tariffs even before they were finally imposed last week, the Nigerian government has offered its first take on the global development, admitting that the adverse effects of the tariffs, will disrupt trade relations, and weaken the competitiveness of Nigerian products in the U.S. market.
According to a PUNCH report, the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, made the admission in a statement she signed on Sunday, providing the government’s first response days after the tariffs were announced.
NEW DAILY PRIME reported that Trump had announced in a decision widely condemned by the European Union and exporting nations that countries seeking to sell goods to the United States would now face taxes as high as 50 per cent.
Expectedly, financial analysts and economic experts have been reacting and are unanimous in their opinion that the policy would raise the prices of goods and services for consumers, weaken the standard of living, hamper manufacturing activities, hinder international trade and consequently lower demand for Nigerian oil in the US, one of its key markets.
Responding to this development, the minister noted that the new tariff on key categories could negatively affect the competitiveness of Nigerian goods in the U.S. market and destabilise businesses in the non-oil sector, affecting both price competitiveness and market access.
Oduwole said, “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).
“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.
“SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments.
“This 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.”
President Trump’s announcement, made during a ‘Make America Wealthy Again’ event in the Rose Garden, marked a dramatic shift from decades of free-trade orthodoxy that had underpinned the global economy since World War II.
