THE Federal Government of Nigeria has said that the recent tariff measures imposed by the United States  President, Donald Trump, would adversely impact its oil and non-oil export businesses.

The Minister of Industry, Trade, and Investment, Jumoke Oduwole, in a statement on Sunday, April 6, said the new tariffs pose ‘destabilising challenges’ to Nigerian trade.

She said it could potentially disrupt trade relations and affect the competitiveness of Nigerian products in the US market, especially in sectors reliant on market access and price competitiveness.

She noted Nigeria’s exports to the US averaged $5 to $6 billion annually in the last two years.

“A significant portion (of Nigeria’s exports) — over 90 per cent — comprises crude petroleum, mineral fuels, oils, and gas products. The second-largest export category, accounting for approximately 2–3 per cent, includes fertilizers and urea, followed by lead, representing around 1 per cent of total exports (valued at approx $82 million).

“Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than 2 per cent of our total exports to the U.S,” Oduwole pointed out.

While oil has long dominated Nigeria’s exports to the US, non-oil products—many previously exempt under the African Growth and Opportunity Act (AGOA)—now face potential disruption, she said.

“A new 10 per cent tariff on key categories may impact the competitiveness of Nigerian goods in the US.

“For businesses in the non-oil sector, these measures present destabilising challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda,” Oduwole said.

The minister also pointed out that smaller businesses, particularly small and medium-sized enterprises (SMEs), that rely on the AGOA exemptions would feel the brunt of the new tariff.

The businesses are also feeling it because of the rising costs and uncertain buyer commitments that are likely to make market access even more difficult, she said.

“This development strengthens Nigeria’s resolve to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards and improve market acceptance in more economies across the globe,” Oduwole added.

The ICIR had reported that the new tariffs decision by the US president has been widely criticised by global trade organisations, including the International Monetary Fund (IMF) and the World Trade Organisation (WTO) criticised Trump’s tariff measures, asserting that they pose a significant risk to the global economy.

Trump’s position was that Nigeria’s 27 per cent tariff on US exports has been disadvantageous to American businesses, hence the imposition of the 14 per cent tariff on Nigeria’s exports as necessary to address the imbalance.

The imposition of the new tariffs, announced on April 2, came with immediate effect and would impact the economies of over 50 countries, including major trade partners such as China, the European Union (EU), India, and Japan, along with developing economies across Asia, Africa, and Latin America.