The Federal Government has acknowledged that several of Nigeria’s oil and non-oil exports are set to face adverse effects due to the newly imposed tariffs by US President Donald Trump on Nigerian exports.
This tariff, which is expected to disrupt trade relations, could potentially weaken the competitiveness of Nigerian products in the U.S. market.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, admitted in a statement sent to our correspondent in Abuja.
The minister, in a personally signed statement on Sunday, provided the government’s first response three days after the announcement.
Recall 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.
Economic experts, in separate interviews with The PUNCH, explained that the policy would raise the prices of goods and services for consumers, weaken the standard of living, slow down manufacturing activities, hinder international trade and consequently weaken demand for Nigerian oil in the US, one of its key markets.
According to the minister, Nigeria’s exports to the United States have averaged $5–6 bn annually in the last two years.
The 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.
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.”