The Federal Government of Nigeria has expressed concerns over the potential negative impact of the recent tariff measures imposed by United States President, Donald Trump, which it says could significantly affect the country’s oil and non-oil export businesses.
In a statement released on Sunday, the Minister of Industry, Trade, and Investment, Jumoke Oduwole, stated that the new tariffs present “destabilising challenges” to Nigeria’s trade relations.
She emphasized that these measures could disrupt trade and harm the competitiveness of Nigerian products in the U.S. market, particularly those reliant on market access and price competitiveness.
Oduwole highlighted that Nigeria’s exports to the U.S. averaged between $5 to $6 billion annually over the past two years. She further outlined that a significant portion—over 90 percent—of Nigeria’s exports to the U.S. consists of crude petroleum, mineral fuels, oils, and gas products. The second-largest export category, fertilizers and urea, accounts for approximately 2–3 percent, followed by lead, which represents about 1 percent of the total exports (valued at around $82 million).
The minister also noted that while oil has historically dominated Nigeria’s exports to the U.S., non-oil products—many of which were previously exempt under the African Growth and Opportunity Act (AGOA)—are now at risk of facing disruption. She warned that the new 10 percent tariff on key categories could undermine the competitiveness of Nigerian goods in the U.S. market.
“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,” Oduwole said.
She also pointed out that smaller businesses, particularly small and medium-sized enterprises (SMEs) that rely on the AGOA exemptions, would be disproportionately affected by the new tariff. These businesses are already struggling with rising costs and uncertain buyer commitments, which are likely to make market access even more challenging, she explained.
“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,” Oduwole added.
The ICIR had previously reported that Trump’s tariff measures have been widely criticized by global trade organizations, including the International Monetary Fund (IMF) and the World Trade Organization (WTO). These bodies have warned that the tariffs pose a significant risk to the global economy. Trump’s stance, however, is that Nigeria’s 27 percent tariff on U.S. exports has been disadvantageous to American businesses, leading to the imposition of a 14 percent tariff on Nigeria’s exports in an effort to correct the trade imbalance.
The new tariffs, which were announced on April 2 and took effect immediately, are expected to impact the economies of over 50 countries, including major trade partners such as China, the European Union (EU), India, and Japan, as well as developing economies across Asia, Africa, and Latin America.
