The Federal Government of Nigeria has acknowledged the recent imposition of a 14% tariff on Nigerian exports by the United States, stating its commitment to mitigating the impact while accelerating economic diversification.
In a statement signed by the Honourable Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, which was released on Sunday, the government noted that while oil has long dominated Nigeria’s exports to the US, non-oil products—many previously exempt under the African Growth and Opportunity Act (AGOA) now face potential disruption.
It added that the new 10% 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 distabilizing challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda.
“SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments,” it stated.
Nigeria’s Exports To The U.S.
According to the statement, Nigeria’s exports to the U.S. have averaged $5–6 billion annually over the past two years, with crude oil and mineral fuels accounting for over 90%.
It added that non-oil exports such as fertilizers, urea, lead, and agricultural products make up less than 5% of total shipments.
With the new tariffs, Nigerian businesses in value-added and agro-processing sectors may face reduced competitiveness in the U.S. market.
The government, however, said it sees this as a catalyst to fast-track export diversification and improve compliance with international standards.
“We are approaching this moment with pragmatism and purpose—turning global trade challenges into opportunities to grow our non-oil export footprint and build a more resilient economy,” said Dr. Oduwole.
She said the Tinubu administration has rolled out policy, financing, and infrastructure measures to help Nigerian businesses adapt, including:
The government described the U.S. as a “valued trade and investment partner” but emphasized Nigeria’s resolve to strengthen economic resilience amid global trade uncertainties.
The statement noted that Nigeria remains in active consultations with U.S. trade representatives and the World Trade Organization (WTO) to address the implications of the new tariffs.
This follows a recent meeting between the U.S. Ambassador and the Minister on March 26, 2025, where both nations reaffirmed their commitment to strengthening bilateral trade ties.
The statement highlighted the African Continental Free Trade Area (AfCFTA) as a critical avenue for reducing dependency on Western markets.
Nigeria is pushing for accelerated AfCFTA implementation, leveraging tools like the Pan-African Payment and Settlement System (PAPSS) to boost intra-African trade.
Backstory
The United States President, Donald Trump, recently imposed a global tariff on all U.S. trading partners, in what he dubbed “Liberation Day.”
The decision sent global markets into a tailspin, as foreign investors sold off assets over fears of heightened uncertainty and potential reciprocal tariffs. In response, China retaliated with a 34% tariff on all U.S. imports into the country.
The United States also imposed a 14% tariff against Nigeria, claiming the country operates a trade surplus.
Based on Trump’s stated policy, this should have warranted a 28% tariff, but Nigeria received what Trump called a “concessionary” 14% rate.
While the tariffs are not expected to significantly affect Nigeria’s trade position with the U.S., the likely impact will be felt on the crude oil front. Nigeria relies heavily on crude oil to shore up its foreign currency earnings and thus prefers higher oil prices.
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