From Scholastica Hir, Makurdi
Jude Azai is a pharmacist, business strategist and administrator. He’s a Business Administration major with concentration in marketing and supply chain management from the Whitman School of Management, Syracuse University, New York. From leading a multimillion-dollar growth initiatives in Nigeria’s pharmaceutical industry to pioneering sustainability and process excellence in the U.S, Jude’s journey is marked by impact, transformation, and purpose. He speaks on how Nigeria can benefit from President Trump’s tariffs’ regime.
How does President Trump’s tariffs on imported goods from countries like China, Mexico, and Canada affect Nigeria’s economy, particularly in terms of trade relationships and revenue generation?
President Trump’s tariffs on imported goods from China, Mexico, and Canada (among other countries) have had a ripple effect on global trade, which directly and indirectly affect Nigeria. It is a well-known economic fact that tariffs have the capacity to disrupt supply chains that could then lead to increased costs of raw materials and finished goods. With these tariffs, countries like China may want to seek innovative ways to improve trade with other countries like Nigeria. This may in deed, be a gold mine for Nigeria if the opportunity presenting itself is well harnessed for the good of the citizenry. It is key to understanding the times we have found ourselves today. The richest country in the world favours deal-making in international relations, and the earlier Nigeria smells the coffee, the better it will see this as an economic opportunity to even reach out to the United States with a view to making mutually benefiting deals.
Nigeria may also reduce dependency on traditional partners by strengthening ties with emerging markets such as India, Brazil, and ASEAN (Association of Southeast Asian Nations) countries to maintain stable supply chains. This is also the time to intensively promote export diversification especially non-oil exports to the U.S. under the African Growth and Opportunity Act (AGOA) to mitigate revenue loss from trade disruptions. I, therefore, see President Trump’s tariffs as being a blessing to Nigeria if properly harnessed.
What are the potential disruptions to Nigeria’s supply chain due to President Trump’s executive orders, especially those related to immigration and border control?
Immigration and border control are among the core pillars of President Trump’s campaign promises, as such are top of mind to his administration and the country. It is expected to increase the US’ internal security. While the Executive Orders on immigration and border controls may lead to delay in the movement of goods, affecting global supply chains, it may provide the opportunity for creativity in creating new services to fast-tract trans-national trade and business. Since Nigeria relies heavily on imported inputs for its manufacturing sector, such disruptions could increase lead times, impact production schedules, and inflate costs, but the creative mindset of Nigerians in the realm of artificial intelligence and blockchain technology could prove to be a breath of fresh air. Therefore, strengthening regional supply chains by building robust intra-African supply networks under the African Continental Free Trade Area (AfCFTA) to mitigate dependency on external supply chains, will not only prove to be a wise decision, but may well save many businesses and jobs for millions of Nigerians. Additionally, it will be rationally pleasant to adopt digital supply chain technologies which are proven to improve efficiency through automation and real-time tracking to manage delays effectively.
Do you think President Trump’s economic policies, such as tax reforms and deregulation, impact foreign investment in Nigeria and the country’s overall economic growth?
The American government wants to bring back manufacturing to the US after decades of outsourcing it to countries in Asia where the cost of manufacturing is very low. These reforms aim at significantly reducing tax for manufacturing companies in the US and increasing tariffs, as such, may serve as incentive for U.S companies to repatriate capital, and potentially reducing Foreign Direct Investment (FDI) in developing economies such as Nigeria. This shift may slow Nigeria’s economic growth, especially in sectors reliant on U.S investments such as oil, gas, technology, and the Nigerian Airforce. The Nigerian government on the other hand could promote Public-Private Partnerships (PPPs), encourage local investments by creating favourable regulatory frameworks and reducing barriers for foreign investors, increase mechanised farming to make Nigeria a net exporter of food.
President Trump’s Executive Orders on the homeland and its infrastructure are a clear signal that it has prioritised U.S domestic projects, reducing U.S financing for international projects. With the investigations into the work of USAID and subsequent actions geared towards making it defunct, developing economies like Nigeria may experience temporary setbacks, which to my mind is good because it is now an incentive for us to develop and put in place the right framework and efforts to modernise our transport networks, that could impact trade and logistics. To ameliorate the impact of this development, Nigeria could explore alternative financing models and the engagement of multilateral institutions like the African Development Bank (AfDB) to secure infrastructure financing at the lowest possible interest rates.
Is there a win-win for Nigeria and the United States?
While President Trump’s Executive Orders and protectionist policies created challenges for Nigeria’s access to U.S markets, they also opened opportunities for Nigeria to diversify its exports, strengthen its suppl y chains, and attract foreign investment. By taking a proactive approach to trade policy, improving supply chain resilience, and leveraging regional integration under AfCFTA, Nigeria can enhance its global competitiveness and maintain a favourable trade relationship with the United States. This approach creates a win-win scenario where Nigeria gains economic stability and growth, while the U.S. secures diversified supply chains and stronger trade partnerships in Africa. It should be noted that the strategic shift in Nigeria’s Airforce to start acquiring the Super Tucano jets from the United States is likely going to be improved under President Trump if Nigeria presents the right deal for the US. It is the age of deal-making and tariffs, and it is a country’s competitive advantage that will set it apart and help it broker the right deal for its citizens.