Nigeria braces for potential economic strain as US imposes new 14% export tariff.
The United States, under President Donald Trump, has slammed a 14% tariff on Nigerian exports as of April 2, 2025. In response, Nigerian experts and economists are voicing concerns over the ripple effects this move could have on the nation’s already fragile economy.
According to business blog Bloomwiz, while the US action raised eyebrows, it’s worth noting Nigeria already imposes a 27% tariff on American goods.
Experts Weigh In on Possible Fallout
Media analyst Ehichioya Ezomon highlighted that Nigeria could face more than just direct tariff implications. “President Trump’s policy now views VAT as a tariff equivalent, and this could affect Nigeria’s VAT-heavy revenue structure,” he noted.
Trump emphasized that even routing goods through other countries would no longer be tolerated, adding, “There are no tariffs if you manufacture or build your product in the United States.”
Minimal Shock, But Risks Remain — CPPE Boss
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), stated the direct impact may be minor since only 10% of Nigeria’s exports go to the US.
However, he warned of indirect consequences such as inflation, disrupted supply chains, and potential impacts on oil prices and the naira exchange rate.
“The closure of the AGOA trade window and global trade tension could trigger shifts in global markets, affecting our reserves and revenues,” Yusuf explained.
A Call for Economic Self-Reliance — CSJ Director
Eze Onyekpere, Director of the Centre for Social Justice, said this should be a wake-up call for Nigeria to invest inwardly. He criticized Nigeria’s handling of the Dangote Refinery and called for a “Nigeria-first” procurement policy.
“This tariff war confirms that even global powers are embracing state-driven economic protection. Nigeria must do the same,” he said.
AGOA May Be History — Arewa Economic Forum
Alhaji Ibrahim Yahaya, Chairman of the Arewa Economic Forum, believes the tariffs could signal the end of trade agreements like AGOA.
He added, “The US is trying to bring production back home, but they’ll need major infrastructure investment to compete globally.”
He also suggested that the move may encourage global trade diversification, which could benefit countries like Nigeria in the long run.
Nigerians Must Prepare for Short-Term Pain — Agropreneur Warns
Martin Okorowu, a data analyst and agropreneur, sees both risks and opportunities. While the tariffs could push Nigeria to diversify its trading partners, he warns that the short-term effect may include increased forex pressure and reduced exports.
“The government needs smart policies to help businesses adapt,” he advised.
Ripple Effects on Everyday Nigerians — Marketing Expert Breaks It Down
Cyrus Ologun, an advertising entrepreneur, emphasized how even non-traders will feel the impact. “With higher global prices and a stronger dollar, the naira will weaken further, increasing the cost of everyday goods,” he warned.
He also noted that many Nigerians may turn to crypto and foreign currency to hedge against currency instability, pushing black market rates even higher.
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