The Federal Government of Nigeria has expressed serious concern over the newly imposed tariffs by U.S. President Donald Trump, warning that the decision could destabilize Nigeria’s export-driven economy and pose significant challenges to trade relations between the two countries.
In a statement released Sunday, Nigeria’s Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, acknowledged that the U.S. tariff hike will likely erode the competitiveness of both oil and non-oil Nigerian products, making it harder for local exporters—especially small and medium-sized enterprises—to maintain a foothold in the U.S. market.
Dr. Oduwole revealed that Nigeria’s exports to the United States have averaged between $5 billion and $6 billion annually over the last two years. A dominant 90 percent of these exports consist of crude petroleum, mineral fuels, and gas-related products. Non-oil exports, though smaller in volume, include fertilizers, urea, lead, and select agricultural goods like live plants, flour, and nuts.
“While oil has long dominated Nigeria’s exports to the U.S., our non-oil products—which have benefited from exemptions under the African Growth and Opportunity Act (AGOA)—now face serious disruption,” the minister said.
According to her, fertilizers and urea account for roughly 2–3 percent of Nigerian exports to the U.S., while lead contributes around 1 percent, valued at approximately $82 million annually. Agricultural products remain modest but vital for SMEs and rural-based producers.
The tariff increase, which will reportedly affect a wide range of foreign imports including those from Nigeria, is expected to impose duties of up to 50 percent. Many of Nigeria’s small and medium-sized businesses, which previously benefited from duty-free access to U.S. markets under AGOA, now face rising operational costs and shrinking demand.
“The most immediate impact will be felt by small exporters who rely on AGOA exemptions,” Dr. Oduwole noted. “These businesses now face rising costs and wavering buyer interest, making it harder to penetrate or sustain presence in the U.S. market.”
The minister stressed that the policy shift underscores the urgent need for Nigeria to diversify its economy and strengthen the global competitiveness of its non-oil sectors. She said the government is now redoubling efforts to improve quality control, certification, and traceability in export production, in a bid to access a wider range of international markets.
Trade and economic experts have also sounded alarms over the long-term effects of the U.S. policy on Nigeria’s economy. Speaking to *The PUNCH*, economists warned that the tariffs could raise consumer prices, slow down manufacturing, reduce international trade, and lower demand for Nigerian oil—especially in the U.S., one of Nigeria’s key export markets.
They argue that the Trump administration’s move signals a significant retreat from long-standing free-trade principles and could weaken economic ties with several African nations, including Nigeria.
As the global economy navigates a new era of protectionism and tariff wars, Nigeria is seeking to adapt by enhancing its trade resilience. Dr. Oduwole emphasized that while the immediate outlook may be uncertain, the situation presents an opportunity for Nigeria to accelerate reforms aimed at boosting non-oil exports and strengthening export compliance.
“This development strengthens Nigeria’s resolve to boost its non-oil exports by enhancing quality assurance, control, and traceability in line with global standards,” she concluded.
With the U.S. now imposing a more rigid tariff regime, Nigeria’s trade strategy will likely pivot toward deeper engagement with emerging markets in Africa, Asia, and Europe, while also investing in export infrastructure and compliance mechanisms to sustain competitiveness in the global arena.
