As global trade tensions escalate, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has raised a red flag, warning that Nigeria could face serious economic instability, widespread job losses, and a decline in foreign exchange inflows if swift action isn’t taken.
Speaking at the 2025 Vanguard Economic Discourse in Lagos, NACCIMA President Dele Oye emphasized that Nigeria must begin to strategically position itself to weather the storm triggered by rising protectionist policies, especially from major economies like the United States.
Themed “Nigeria’s Economic Outlook 2025: Hardship and Pathways to Sustainable Recovery,” the event spotlighted the consequences of America’s 14% tariff on Nigerian exports—especially crude oil, LNG, and agricultural goods—which could severely disrupt Nigeria’s access to critical foreign markets.
According to Oye, “The ‘America First’ doctrine has shifted global trade away from cooperation to competition, jeopardizing Nigeria’s place in international commerce. If we fail to respond, the outcome could be devastating—lost jobs, a weaker naira, and limited forex earnings.”
He also highlighted cuts in U.S. funding to African development programs, pointing to a $51 million reduction that previously supported start-ups and SMEs in Nigeria and Kenya.
A Call for a Homegrown Strategy
Oye stressed the urgent need for a locally rooted economic strategy. “Nigeria must adopt an affordable, resilient homegrown democracy and restructure its economy to thrive amid these global shifts.”
Among his key recommendations:
Deepen participation in the African Continental Free Trade Area (AfCFTA) to promote regional trade.
Expand economic ties with emerging markets like China, India, and Brazil.
Invest in transport and logistics to improve access and attract foreign investments.
Shield special economic zones from erratic municipal regulations.
Promote value-added production, especially in agriculture and technology sectors, to reduce raw material exports.
Invest in vocational training to build a skilled workforce.
Support tech startups and innovation hubs as drivers of future economic growth.
Enhance regulatory systems to encourage local and foreign investments.
He further noted, “We must prioritize home-grown industries and SMEs to create jobs, reduce import dependence, and unlock long-term prosperity.”
MAN Rejects NPA’s 15% Fee Hike
Echoing similar concerns, the Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, criticized proposed increases in port fees by the Nigerian Ports Authority (NPA), calling them counterproductive in the current climate.
“The NPA should forget about any 15% increase right now,” he warned, adding that such policies threaten to erode what little competitive edge Nigeria’s industries still hold.
Ajayi-Kadir stressed the importance of creating a business-friendly environment and streamlining regulatory processes to strengthen local manufacturing capacity. “We must build resilience from within,” he stated, “because the global shocks are not slowing down.”
He pointed out that while the U.S. may not top Nigeria’s trading partners, any policy changes there can cause collateral damage, especially if other key partners are affected too.
AfCFTA as Nigeria’s Lifeline
Ajayi-Kadir praised Nigeria’s growing engagement with the AfCFTA, revealing that trade within Africa surpassed trade with any single foreign nation last year.
“This is the way forward,” he said. “Our intra-African trade hit ₦8.7 trillion last year—higher than our trade with America or even China. This proves that the future of our economy lies in regional collaboration.”
Both Oye and Ajayi-Kadir agreed: Nigeria must stop relying on external goodwill and instead harness its abundant local resources, improve internal policies, and push for regional economic integration.
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