The Nigerian Federal Government has expressed concern over new tariffs imposed by the United States. It warned that the move could harm Nigeria’s trade position and pressure export-driven businesses, especially in the non-oil sector.
In a statement issued on Sunday, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the tariffs present “destabilising challenges” for Nigerian exports. She explained that products that depend on affordable pricing and open market access would struggle to remain competitive.
She noted that Nigeria’s exports to the U.S. have averaged between $5 billion and $6 billion in the past two years. More than 90 per cent of that total comes from crude oil, mineral fuels, and gas products. Fertilisers and urea contribute about 2 to 3 per cent, while lead makes up roughly 1 per cent, valued at $82 million. Agricultural items, including live plants, flour, and nuts, account for less than 2 per cent.
While oil remains Nigeria’s top export, non-oil products have gained market access through the African Growth and Opportunity Act (AGOA). Many of these products may now face new restrictions.
Earlier last week, the U.S. imposed a 14 per cent tariff on Nigerian exports. This followed President Donald Trump’s announcement of a new trade policy at the White House last Wednesday. He said the aim is to protect American industries and stop unfair trade practices.
U.S. officials claim Nigeria’s 27 per cent tariff on American goods has long disadvantaged U.S. businesses. The new rules introduce a 10 per cent base duty on all imports and target over 50 countries. Nations with high trade surpluses face even higher rates. China was hit with 34 per cent, the European Union 20 per cent, and Vietnam 28 per cent.
Dr Oduwole said Nigerian businesses could face higher operational costs and more uncertain buyer commitments. This, she explained, would limit market access and threaten gains made in non-oil exports.
For small businesses that rely on AGOA exemptions to survive, this poses serious risks. It also makes it more urgent for us to improve the quality, traceability, and competitiveness of our products”, she said.
Trade experts have raised similar concerns. They say the tariffs could increase consumer prices, disrupt supply chains, and reduce U.S. demand for Nigerian crude oil.
The Director-General of the World Trade Organisation, Dr Ngozi Okonjo-Iweala, also warned that the measures could lead to a 1% drop in global merchandise trade volumes this year. That’s nearly four percentage points below earlier forecasts.
I am deeply concerned about the potential for escalation. We could see a cycle of retaliatory tariffs that further weakens global trade”, she stated.
The U.S. tariffs take effect immediately. Higher duties will also be rolled out in phases over the coming months.
