FG forms panel to assess economic impact of US tariffs

The Federal Government has set up a subcommittee to assess the direct and indirect impact of the recent trade tariffs announced by the United States on Nigeria’s economy.

According to a statement released on Friday by the Director of Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, the Economic Management Team, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, convened a meeting earlier this week to evaluate the fiscal and economic implications of the US tariff measures.

The meeting, according to Manga, was attended by key ministries and agencies involved in economic management and policy coordination.

The statement partly read, “Of particular focus was the recent announcements of tariff measures by the United States Government and their potential impact on Nigeria’s economy.

“While crude oil—Nigeria’s major export—has not been directly targeted, the EMT noted the accompanying fall in the international oil price.”

To ensure an evidence-based approach to policymaking, the EMT resolved to establish a subcommittee specifically tasked with conducting an extensive review of the economic consequences resulting from these tariff measures, alongside global fluctuations in commodity prices.

The newly inaugurated subcommittee comprises representatives from the Federal Ministry of Finance, the Ministry of Budget and Economic Planning—including the Budget Office of the Federation—and the Central Bank of Nigeria.

Manga explained further, “The subcommittee also held its inaugural meeting this week and will ensure it presents its findings to the full EMT without delay.”

He emphasised that the establishment of the subcommittee demonstrates the government’s commitment to carefully assess economic policies and international developments, ensuring proactive management of potential risks to the Nigerian economy.

Although the tariffs announced by the US government did not specifically target crude oil, Nigeria’s primary export, concerns have arisen from the indirect impacts on oil prices and general market sentiment.

Recent global economic developments, particularly the introduction of tariffs by the United States administration, have triggered a significant decline in global oil prices, dropping below Nigeria’s fiscal breakeven level of approximately $60 per barrel. Analysts warn that prolonged lower oil prices could push Nigeria’s current account balance into deficit and weaken the naira.

JP Morgan, a leading global financial services firm, recently warned of potential foreign portfolio investment declines due to these global uncertainties, further highlighting the urgency of Nigeria’s response.

The Federal Government’s proactive measure through this subcommittee indicates an awareness of the seriousness of global economic shifts and reflects efforts to ensure that policy responses are timely and well-informed.

The subcommittee is expected to quickly deliver its report, which will provide critical insights and recommendations to guide Nigeria’s economic strategy in navigating the ongoing global economic volatility.