By Uche Usim and Merit Ibe
Following a dramatic shake-up of global trade policies on Wednesday by the United States President, Donald Trump, economic experts in Nigeria have urged the federal government to quickly carry out some recalibrations around the country’s foreign trade blueprint in order to make the best out of a potentially challenging situation.
Trump announced a sweeping tariff regime that imposes a baseline 10 per cent duty on all U.S. imports while introducing country-specific reciprocal tariffs targeting nations with higher duties on American goods. Among the countries affected is Nigeria, whose exports to the U.S. will now face a 14 per cent tariff, a move driven by the Trump administration’s assertion that Nigeria imposes a 27 per cent duty on American imports.
Commenting on the development, the Director General, Center for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said Nigeria’s economy has shown resilience, with opportunities emerging even in the face of global uncertainty.
He noted that despite the global tremors precipitated by Trump, Nigeria appears poised to navigate the storm with minimal direct impact, while potentially tapping into new growth avenues.
He recalled that in 2024, Nigeria’s total merchandise exports reached $50.4 billion, with the U.S. accounting for a healthy share of 11.3 per cent—or $5.7 billion. Though Nigeria’s trade with the U.S. is not overwhelmingly large, the exports consist mainly of crude oil, petroleum gas, and nitrogenous fertilizers—sectors where Nigeria continues to have a strong competitive edge. Meanwhile, Nigeria imports key products such as vehicles, wheat, and fuels from the U.S. However, while the nation’s export relationship with the U.S. represents a small portion of its overall trade, Nigeria is well-positioned to adapt to the shifting global landscape.
Also reacting to the development, the Chief Executive officer and Managing Director, Transgreen Nigeria Limited, Cyprian Orakpo, said: “The implication on our oil industry is simple. Our crude will be less competitive to US buyers. But since this 15 per cent was applied globally, then our competitiveness vis a vis other exporters to the US remains unchanged. It only makes the price of US oil producing companies more competitive.
“The lesson to learn locally is for Nigeria to grow her refining capacity. We have the market, especially the African market. More
“Dangote should be encouraged to consume most of our crude oil and export refined products to the rest of the world. We can turn the tariff to our advantage.
“The government and its economic team should diversify our exports to other more friendly countries like Canada did yesterday by going East, particularly China.
But the point remains that we are not export based countries. Crude oil constitutes more than 90 per cent of our export income. The USA used to buy a lot of our crude but not anymore. The remaining few other exports can find alternative markets”* he said.
Trump’s trade shift announcement was made during a White House event dubbed “Liberation Day,” marks a historic departure from the free-trade principles that have shaped global commerce since World War II. Trump framed the policy as the beginning of a new era of “fair trade,” vowing to fortify America’s industrial base while compelling foreign markets to open up to U.S. products. “This is one of the most important days in American history,” he declared. “We will supercharge our domestic industrial base, we will pry open foreign markets, and break down foreign trade barriers.”
The policy, effective immediately, extends to over 50 countries, including economic heavyweights like China, the European Union, India, and Japan, as well as developing economies across Africa, Asia, and Latin America. Nigeria, despite its declining trade with the U.S., finds itself among those facing tariff adjustments. Trade data from Nigeria’s National Bureau of Statistics (NBS) reveals that between 2015 and 2024, total trade with the U.S. amounted to N31.1 trillion, with Nigerian imports from the U.S. reaching N16.4 trillion—representing 8.7 per cent of the country’s global trade. However, U.S. demand for Nigerian exports, particularly crude oil, has steadily declined, weakening Nigeria’s position in the bilateral trade equation.
While Nigeria is not among the most protectionist economies, its inclusion in the U.S. retaliation list highlights Washington’s broad approach to recalibrating global trade relationships. Other African nations such as Ghana, Ethiopia, and Mauritius are also affected, with the latter facing one of the steepest tariff adjustments. Mauritius, which currently imposes an 80 per cent tariff on U.S. goods, will now see a 40 per cent reciprocal duty applied to its exports. The Trump administration has applied similar measures across the continent, signaling a shift that could challenge the preferential trade agreements many African nations have historically enjoyed under frameworks like the African Growth and Opportunity Act (AGOA).
Trump’s new trade strategy revolves around what his administration calls “reciprocal tariffs,” a policy under which the U.S. imposes duties on imports equivalent to half the tariff rates those countries apply to American exports.