Nigeria: US tariffs threaten $10 billion US-Nigeria trade
By Zuleihat Owuiye, Mamos Nigeria
The newly imposed 14% tariff by US President Donald Trump on exports by Nigerian businesses poses a significant risk to the $10 billion annual exports to the United States. This move may disrupt key sectors such as oil export and agricultural trade, experts and trade associations have warned.
The African Growth and Opportunity Act (AGOA), a 25-year duty-free trade partnership between the US and Nigeria, is now under threat. The National President of the Nigerian-American Chamber of Commerce, Sheriff Balogun, expressed concerns that the policy could impact trade volumes worth $277 billion.
Nigeria’s crude oil exports, which account for the majority of the country’s export revenue, may be unaffected by the tariff due to exemptions on energy products. However, agricultural exports and other non-oil products may be negatively impacted.
Economic experts have warned that the tariff war could lead to higher consumer prices, weaker economic activity worldwide, and reduced demand for Nigerian oil. The CEO of Cowry Asset Management Limited, Johnson Chukwu, noted that while Nigeria’s oil exports may be exempt, the broader implications of the tariff war could still affect the country’s economy.
The Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Sola Obadimu, urged the Federal Government to focus on domestic economic growth rather than reacting to US policies. He emphasized the need for Nigeria to prioritize industrialization and job creation.
The new tariffs, which take immediate effect, apply to over 50 countries, including major trade partners like China, the European Union, India, and Japan. The move has been widely criticized, with many experts warning of a potential global trade war.
