By Joy Baba-Yesufu
The Federal Government of Nigeria has acknowledged the recent tariff measures announced by the United States, which include a 14% tariff on Nigerian exports. These developments, the FG said could negatively impact global trade but noted under the administration of President Bola Ahmed Tinubu, GCFR, and its Renewed Hope Agenda, Nigeria is committed to building economic resilience and accelerating export diversification.
Nigeria values its partnership with the United States as a key trade and investment ally, founded on shared values and mutual economic interests. The U.S. Ambassador’s visit to the Honourable Minister of Industry, Trade and Investment on March 26, 2025, reaffirmed the commitment to strengthening economic ties that benefit both nations.
A statement signed by the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole in response to the tariff developments said Nigeria is actively engaging with U.S. counterparts and the World Trade Organization (WTO). The government is approaching changing trade dynamics with pragmatism and a focus on mutually beneficial solutions.
The minister said Since May 2023, President Tinubu has been dedicated to attracting and retaining vital investments adding that the Federal Government is implementing a range of policies, financing options, infrastructure projects, and diplomatic efforts to ensure Nigerian businesses remain competitive in the face of regional and global tariff hikes. This includes expanding access to alternative markets and diversifying product offerings to reduce trade risks.
“Over the past two years, Nigeria’s exports to the U.S. have consistently ranged between $5–6 billion annually. A significant portion, over 90%—consists of crude petroleum, mineral fuels, oils, and gas products. The second-largest category is fertilizers and urea, which make up about 2–3%, followed by lead at around 1% (approximately $82 million). Smaller quantities of agricultural products, including live plants, flour, and nuts, account for less than 2% of Nigeria’s total exports to the U.S.
“While oil has historically dominated Nigeria’s exports to the U.S., non-oil products, many previously exempt under the African Growth and Opportunity Act (AGOA), now face potential interruptions. A newly imposed 10% tariff on key categories threatens the competitiveness of Nigerian goods in the U.S. market, presenting destabilizing challenges for businesses in the non-oil sector, especially in emerging and value-added industries essential to Nigeria’s diversification efforts.
“Small and medium-sized enterprises (SMEs) that have built their business models around AGOA exemptions may struggle with rising costs and uncertain buyer commitments. This situation underscores Nigeria’s determination to enhance non-oil exports by improving quality assurance, control, and traceability in its products to meet global standards and increase market acceptance across different economies.
“Additionally, this development highlights the critical need for Nigeria and Africa at large to boost intra-African trade through the African Continental Free Trade Area (AfCFTA). Emphasizing this, Nigeria is accelerating its implementation of the AfCFTA, deepening regional integration, and leveraging frameworks like the Pan-African Payment and Settlement System (PAPSS) to lower trade costs and foster intra-African trade” the statement said.
Dr. Oduwole, further said the Federal Ministry of Industry, Trade and Investment is approaching this moment with pragmatism and purpose, turning global and regional trade policy challenges into opportunities to grow our non-oil export footprint and build a more resilient economy.”
