The Association of Bureau de Change Operators of Nigeria has urged the Federal Government to bolster trade relations with India, China, and African countries as a strategic response to the damaging effects of a 14% tariff imposed by United States President Donald Trump on Nigerian exports.

ABCON President, Dr. Aminu Gwadabe, raised the alarm over the economic strain caused by the tariff hike, particularly its implications on foreign exchange stability and liquidity in the Nigerian economy.

Speaking on Monday, Dr. Gwadabe called for the urgent diversification of Nigeria’s foreign exchange sources, emphasizing the country’s overdependence on oil revenues.

“Nigeria, being a mono-cultural economy that relies heavily on petro-dollar receipts, should embrace more trade partnerships with countries like India, China, and African markets to broaden its export base,” he said.

To address foreign exchange volatility, Dr. Gwadabe recommended that the Central Bank of Nigeria mandate commercial banks to channel interbank proceeds to Bureau de Change operators. This, he argued, would help reduce pressure on the forex market and stabilize the naira.

He also advocated for policies that support local production of exportable goods, which would help reduce Nigeria’s reliance on oil and strengthen its economic resilience.

The CBN has already injected $197.71 million into the forex market through sales to authorized dealers, a move Dr. Gwadabe commended. However, he warned that the long-term effects of the U.S. tariff could undermine these efforts by making Nigerian products less competitive, leading to reduced exports and revenue losses.

The naira continued to face depreciation pressures despite recent interventions. On Monday, it closed at N1,629.00 per dollar in the official market, down from N1,600.00 on Friday and N1,569.00 on Thursday.

In contrast, the parallel market saw a slightly stronger performance, with the naira trading at N1,555.00/$1, compared to N1,560.00/$1 at the close of last week.

Dr. Gwadabe stressed the need for the CBN to ensure liquidity not only in the interbank segment but also in the retail forex market, particularly to serve small and medium-sized enterprises and invisible transactions such as education and medical expenses.

He described the U.S. trade tariffs as part of a broader “global tension raging like wildfire across jurisdictions,” warning that their ripple effects are being felt across emerging markets like Nigeria, and while lauding the CBN’s consistency in intervening to curb inflation and market volatility, he emphasized the need for long-term economic strategy and diplomacy to shield Nigeria’s economy from future shocks.