Nigeria Set to Reevaluate Global Tariff War Impact, Strengthen Economic Frontlines
The Federal Government is set to take a fresh look at how the ongoing global tariff war is affecting Nigeria’s economy.
Speaking at a forum organized by the Ministry of Finance Incorporated (MOFI) in Abuja, Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, revealed that President Tinubu’s economic team is returning to the drawing board.
“For Nigeria, oil exports are largely safe due to exemptions from American tariffs. However, our non-oil exports are facing a 14% tariff—still better than Vietnam’s 46%,” Edun said. He added that this situation, while challenging, presents an opportunity.
“If investors find it difficult to produce in Vietnam, they can shift to Nigeria. We offer a stable economy, investor-friendly policies, and strong export potential.”
NNPC Must Set the Bar Before Going Public
Edun also emphasized the need for transparency and accountability in government-owned enterprises, especially the Nigerian National Petroleum Company Limited (NNPCL). As plans emerge for NNPC to go public, Edun noted that corporate governance must be the foundation.
“NNPC is the crown jewel of Nigeria’s corporate assets. Before any IPO, it must prove its governance meets global standards,” he stated.
During the event, a new scorecard was launched to assess the performance of Government-Owned Enterprises (GOEs), ensuring they align with MOFI’s standards.
Private Sector Holds the Key
Highlighting the shift in strategy, Edun explained that the government’s new focus is on drawing in private sector investments rather than relying solely on public funds.
“Public funds account for only 10% of Nigeria’s GDP. The remaining 90% lies with the private sector. That’s where real impact will come from,” Edun said. He praised initiatives like the Highway Development and Management Initiative, which hands major road projects over to private investors under concession agreements.
World Bank Calls for Transparency
In his remarks, outgoing World Bank Country Director Dr. Ndiame Diop praised efforts toward accountability but urged for more progress. He revealed that just 50% of Nigeria’s GOEs have published their annual accounts, though this was an improvement from previous years.
Dr. Diop, recently appointed Vice President of the World Bank’s African Region, applauded the use of technology to extract revenues even before full account audits—a move he says has improved government revenue collection.
MOFI’s Role in Driving Economic Reform
Dr. Armstrong Takang, Managing Director of MOFI, shed light on the strategic role of GOEs in Nigeria’s economic development. These entities dominate crucial sectors like energy, infrastructure, finance, and manufacturing.
He described MOFI as the custodian of public wealth, actively engaging with GOEs to enforce high standards, encourage innovation, and make Nigerian enterprises globally competitive.
“Our mission is to turn SOEs into value drivers and attract private sector collaboration,” Takang emphasized.
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