The Federal Government has said that the 14 percent reciprocal tariffs imposed on Nigeria by US President, Donald Trump, have the potential to adversely impact Nigeria’s oil and non-oil exports. The Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, stated in a statement, saying that the development could potentially disrupt trade relations and undermine the competitiveness of Nigerian products in the US market, especially in sectors reliant on market access and price competitiveness. She, however, reiterated the federal government’s commitment to mitigating the impact while accelerating economic diversification. According to the minister, Nigeria’s exports to the United States have averaged $5–6 billion annually in the last two years.
Oduwole said: “A significant portion of Nigeria’s exports (over 90 percent) comprises crude petroleum, mineral fuels, oils, and gas products. The second-largest export category, accounting for approximately 2–3 percent, includes fertilizers and urea, followed by lead, representing around one percent of total exports valued at approximately $82 million.
“Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than two percent 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 percent tariff on key categories may impact the competitiveness of Nigerian goods in the U.S. For businesses in the non-oil sector, these measures present destabilizing challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda.”
The minister also noted that smaller businesses, particularly SMEs, that rely on the African Growth and Opportunity Act exemptions would feel the brunt of the new tariff, with rising costs and uncertain buyer commitments likely to make market access even more difficult.
“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 into more economies across the globe.”She added,
