Federal Government has expressed
firm commitment to building economic resilience and accelerating export diversification, acknowledged the recent tariff measures announced by the U.S. Government, including imposing a 14 per cent tariff on Nigerian exports.
This is contained in a statement signed by Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, on Sunday in Abuja.
The U.S. President, Donald Trump, announced that exports from Nigeria to the U.S. will now be subjected to a 14 per cent tariff.
The decision was made during a ‘Make America Wealthy Again’ event in the Rose Garden on Wednesday.
Pix: Nigerian President I’mTinubu
It is part of a broader strategy aimed at rebalancing global trade and addressing perceived unfair trade practices.The newly introduced 14 per cent tariff marks a significant shift in U.S.-Nigeria trade relations, with the U.S. dd citing an ongoing trade imbalance.
Oduwole, while responding to the announcement of the recent tariff, said that Nigeria remained actively engaged in consultations with U.S. counterparts and the World Trade Organisation (WTO).
She said that the Federal Government remained firmly committed to building economic resilience and accelerating export diversification.
“The Federal Government acknowledges the recent tariff measures announced by the government of the United States, including imposing a 14 per cent tariff on Nigerian exports.
“The Federal Government considers the United States a valued trade and investment partner, bound by shared values and mutual economic interests.
“The U.S. Ambassador’s visit to the ministry recently, reaffirmed our joint commitment to strengthening economic ties that benefit both economies.
“Nigeria remains actively engaged in consultations with U.S. counterparts and the WTO, approaching evolving trade dynamics with pragmatism and a commitment to mutually beneficial solutions,” she said.
The minister said that since May 2023, President Bola Tinubu, has remained actively committed to attracting and retaining much-needed investments from old and new friends of Nigeria.
She said the Federal Government was implementing a range of interventions in policy, financing, infrastructure and diplomacy to help Nigerian businesses remain competitive amidst regional and global tariff hikes.
“The government is also expanding alternative market access opportunities and ensuring off-take diversification to reduce and mitigate trade risks.
“Nigeria’s exports to the U.S. over the last two years has consistently ranged between five to six billion dollars annually.
“A significant portion over 90 per cent comprises crude petroleum, mineral fuels, oils and gas products.
“The second-largest export category, accounting for approximately two to three per cent, includes fertilisers and urea, followed by lead, representing around one per cent of total exports.
” This is valued at approximately 82 million dollars,” she said.
Oduwole said Nigeria also exported smaller quantities of agricultural products such as live plants, flour and nuts, which account for less than two per cent of total exports to the U.S.
According to her, while oil has long dominated Nigeria’s exports to the U.S, non-oil products many previously exempt under African Growth and Opportunity Act (AGOA), now face potential disruption.
“A new 10 per cent tariff on key categories may impact the competitiveness of Nigerian goods in the U.S. for businesses in the non-oil sector,” she said.
The minister said that the measures present destabilising challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to diversification agenda.
She added that Small Medium-size Enterprises (SMEs), building their business models around AGOA exemptions would face the pressures of rising costs and uncertain buyer commitments.
She said the development would boost its non-oil exports as well as meeting global standards and improving market acceptance into more economies across the globe.
She emphasised the urgent need to enhance intra-African trade through the African Continental Free Trade Area (AfCFTA), adding that the ministry was committed to ensuring a strong conducive business environment.