7th April 2025 — Abuja, Nigeria
T he Federal Government has raised concern over the far-reaching impact of the newly imposed tariffs by U.S. President Donald Trump, warning that the move could significantly undermine Nigeria’s oil and non-oil exports to the American market.
The warning comes days after the Trump administration announced sweeping tariffs — some as high as 50 per cent — on imports into the United States, a decision that has drawn criticism from global trade partners, including the European Union.
In a statement personally signed and released on Sunday, the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, described the new policy as a blow to Nigeria’s economic diversification agenda and a direct threat to trade competitiveness.
“For two consecutive years, Nigeria’s exports to the United States have consistently hovered between $5 billion and $6 billion annually,” Oduwole said. “Over 90 per cent of this figure is derived from crude petroleum, mineral fuels, and gas. However, non-oil exports—such as fertilisers, lead, and agricultural products—now face serious disruptions under the new tariffs.”
The minister noted that fertiliser and urea exports account for 2–3 per cent of Nigeria’s total export volume to the U.S., while lead makes up around one per cent, valued at approximately $82 million. Other exports, including live plants, flour, and nuts, collectively contribute less than two per cent.
Under the African Growth and Opportunity Act (AGOA), many of these non-oil exports had previously enjoyed duty-free access to U.S. markets. But the revised policy could impose an additional 10 per cent tariff on those categories, thereby reducing their price competitiveness and threatening business viability, especially among small and medium enterprises (SMEs).
“SMEs that built their strategies around AGOA exemptions now face rising operational costs and uncertain buyer commitments,” the minister added. “This threatens emerging and value-added sectors that are central to our export diversification plan.”
The move by Trump, unveiled during a “Make America Wealthy Again” campaign event in the White House Rose Garden, signals a sharp departure from post-World War II free trade norms that have defined U.S. economic policy for decades.
Trade analysts, speaking with GLiDE NEWS, warned that the ripple effects of the tariffs could extend beyond trade volumes, potentially lowering consumer purchasing power in the U.S., slowing global manufacturing, and reducing demand for Nigerian oil in one of its key export markets.
Despite the concerns, Oduwole affirmed Nigeria’s determination to adapt by boosting quality assurance and traceability across its export value chains. “We remain committed to enhancing global market access by meeting international standards. Our strategy is to strengthen non-oil sectors, build resilience, and pivot towards new export destinations,” she said.
As global trade dynamics shift, Nigeria faces a fresh test of its ability to navigate uncertainty and assert its place in the evolving economic order.
— Reported by Agboola Aluko for GLiDE NEWS
Agboola Aluko is a Lagos-based journalist reporting for GLiDE NEWS.
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