US tariffs have ‘negligible’ impact on Nigeria’s exports – Edun

Speaking at the inaugural Corporate Governance Forum organized by the Ministry of Finance Incorporated in Abuja, Edun acknowledged the gravity of escalating global tariff conflicts but emphasized Nigeria’s relative insulation.

“Nigeria’s exports to the US was N1.8tn, N2.6tn and N5.5tn in 2022-2024, respectively. Fortunately, oil and mineral exports accounted for 92 per cent, implying oil and mineral exports amounted to N5.08tn in value, while non-oil was just N0.44 trillion. Consequently, the tariff effect on exports is negligible if we sustain our oil and minerals export volume,” he explained, noting that oil and mineral exports, Nigeria’s primary exports to the US, are excluded from the tariff.

He also pointed out the 14% tariff is relatively low compared to other nations. “He highlighted the comparatively moderate 14 per cent tariff as favourable when placed alongside Vietnam’s 46 per cent and China’s 34 per cent tariffs.”

Despite this, Edun confirmed that “the government’s economic management team is closely monitoring the global situation.” He added, “We are going back to the drawing board to look at our budget all over again, because we have to see what changes have been made in the assumptions that underlay the production of that budget and the reality over the first quarter and even projected into the future.”

Edun also spoke on the broader state of the Nigerian economy. He praised the stabilization achieved under President Bola Tinubu’s administration and outlined the government’s shift from debt to equity and revenue generation.

“He said Nigeria had progressively transitioned from concessional funding, bilateral loans, and Eurobonds to prioritising equity investments and public-private partnerships. This shift aims to optimise state-owned enterprises and leverage private sector capital and expertise.”

He cited successful initiatives like the Benin-Asaba highway concession as examples of this strategy. “Specifically, Edun cited successful initiatives like the Highway Development and Management Initiative, which recently saw private sector involvement in the Benin-Asaba highway concession, significantly reducing transport time from four hours to one hour.”