The Federal Government has expressed concern over the negative impact of newly imposed United States tariffs on Nigeria’s oil and non-oil exports.
It warned that the measures could strain trade relations and reduce the competitiveness of Nigerian products in the American market.
In a statement issued on Sunday, Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, responded to the tariff decision, acknowledging that the policy would weaken the competitiveness of Nigerian goods in the U.S. market.
According to the minister, Nigeria’s exports to the United States have averaged between $5 billion and $6 billion annually over the past two years.
Oduwole said, “A significant portion (of Nigeria’s exports) — 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 fertilizers and urea, followed by lead, representing around 1 per cent of total exports (valued at approx $82 million).
“Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than 2 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 present destabilising 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 benefit from the African Growth and Opportunity Act exemptions, would be hardest hit by the new tariff.
She warned that rising costs and uncertain buyer commitments could further hinder their access to the U.S. market.
Trump’s tariff announcement on Wednesday sent shockwaves through global stock markets.
Oil and commodity prices plummeted, while investors flocked to the safety of government bonds.
