Minister of Industry, Trade and Investment affirms government’s commitment to protect non-oil exporters and strengthen trade resilience
The Federal Government of Nigeria has officially acknowledged the United States' recent imposition of a 14% tariff on Nigerian exports, pledging swift measures to protect domestic industries while accelerating economic diversification.
In a statement issued on Sunday by the Honourable Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the government emphasized that the new U.S. tariffs—particularly a 10% hike on key non-oil categories—threaten the competitiveness of Nigerian goods, especially for small and medium-sized enterprises (SMEs) that have previously relied on the African Growth and Opportunity Act (AGOA) for tariff-free access.
“SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments,” the statement read.
Impact on Non-Oil Exports
Though Nigeria's exports to the U.S. have consistently averaged $5–6 billion annually, over 90% of those exports are crude oil and mineral fuels. Non-oil exports such as urea, fertilizers, lead, and agricultural products account for less than 5%, making them particularly vulnerable to tariff-related disruptions.
The government acknowledged that these tariffs could have a destabilizing effect on pricing and access to one of Nigeria’s key export markets.
Turning Crisis into Opportunity
Dr. Oduwole said the situation, while challenging, offers a strategic opening to "turn global trade challenges into opportunities" by:
- Expanding access to alternative markets outside the U.S.
- Enhancing traceability and quality control of Nigerian products.
- Strengthening trade diplomacy to secure more favorable global trade terms.
She reaffirmed the Tinubu administration’s resolve to deploy policy, infrastructure, and financing measures to ease the transition for businesses affected by the tariffs.
U.S.–Nigeria Trade Relations Under Review
Despite the setback, Nigeria reiterated its view of the United States as a “valued trade and investment partner”, noting ongoing consultations with both U.S. trade representatives and the World Trade Organization (WTO).
These discussions follow a March 26, 2025 meeting between the U.S. Ambassador and Minister Oduwole, where both parties reaffirmed their commitment to stronger bilateral trade.
Embracing the AfCFTA and Intra-African Trade
With Western trade routes tightening, Nigeria is ramping up its commitment to the African Continental Free Trade Area (AfCFTA). The government cited tools like the Pan-African Payment and Settlement System (PAPSS) as key to reducing dependency on Western markets and boosting intra-African commerce.
Global Trade Shock: Background
The tariff shock came after U.S. President Donald Trump announced sweeping global tariffs in what he controversially dubbed “Liberation Day.” While countries like China responded with steep retaliatory tariffs, Nigeria was hit with a “concessionary” 14% tariff, less than the 28% threshold Trump’s administration typically reserves for trade surplus nations.
Although Nigeria’s oil exports dominate U.S. trade relations, the new tariff regime may pose indirect threats, especially if global uncertainty depresses oil prices—a key source of Nigeria’s foreign exchange earnings.
Bottom Line: While the U.S. tariffs may hurt certain export sectors in the short term, Nigeria sees this as a wake-up call to accelerate its transition from oil dependency, deepen its trade partnerships within Africa, and build a more resilient export economy.