Nigeria risks trade restrictions, higher tariffs on U.S. exports – PwC report warns 

The report, titled ‘Global Economic Policy Changes and Implications for Nigeria’, highlights looming economic challenges for the country as potential changes to President Donald Trump’s U.S. trade policies could disrupt access to crucial markets.

The report emphasised that Nigeria’s economic vulnerability is tied to the future of the African Growth and Opportunity Act (AGOA), a U.S. trade program that facilitates duty-free access to American markets for goods originating from eligible sub-Saharan African nations.

If AGOA benefits are not renewed, Nigeria may lose key trade privileges, severely impacting its exports of crude oil, agricultural products, and manufactured goods.

This loss would hit oil exports particularly hard, a critical revenue source for Nigeria.

The report warns of potential U.S. crude oil import bans or sanctions, which could further isolate Nigerian exports from American markets.

Lower household spending due to declining remittances could exacerbate economic instability, placing further pressure on Nigeria’s fiscal framework.

The report also highlights the devastating impact of a suspension of U.S. aid, which would negatively affect critical sectors such as healthcare, education, and infrastructure. Such a suspension would widen fiscal deficits and heighten Nigeria’s reliance on external debt.

On the oil front, the report points to a surge in U.S. domestic oil production that may lead to a global oversupply, driving oil prices below Nigeria’s budget benchmark.

The resulting plunge in export revenues could severely devalue the naira and amplify Nigeria’s fiscal challenges. Declining oil revenues could trigger increased government borrowing, investor exit, and capital flight, further destabilising the currency and economic outlook.

The reduction in foreign exchange earnings and limited access to capital inflows may leave businesses struggling to secure foreign currency, worsening capital outflows and threatening the stability of Nigeria’s financial system.