The Federal Government of Nigeria has finally responded to the recent imposition of a 14% tariff on Nigerian exports by the United States by stating its commitment to mitigating the impact while accelerating economic diversification.
The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, in a statement which was released on Sunday, said that the new tariff on key categories may impact the competitiveness of Nigerian goods in the U.S.
It said 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.
"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.
"SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments," it added.
The government, however, said it sees this as a catalyst to fast-track export diversification and improve compliance with international standards.
"We are approaching this moment with pragmatism and purpose--turning global trade challenges into opportunities to grow our non-oil export footprint and build a more resilient economy," said Dr. Oduwole.
She said the President Bola Tinubu administration has rolled out policy, financing, and infrastructure measures to help Nigerian businesses adapt, including: Expanding alternative export markets outside the U.S.; Enhancing quality control and traceability for Nigerian goods; and Strengthening trade diplomacy to secure favourable terms.
Trump's tariff
Trump had announced a baseline 10% tariff on all U.S. imports. This is in addition to country-specific reciprocal tariffs with Nigeria's exports to the US now attracting 14 per cent.
According to the statement, Nigeria's exports to the U.S. have averaged $5-6 billion annually over the past two years, with crude oil and mineral fuels accounting for over 90%.
It added that non-oil exports such as fertilizers, urea, lead, and agricultural products make up less than 5% of total shipments.
Also, data from the National Bureau of Statistics indicate that Nigeria's trade with the United States stood at a combined N31.1 trillion between 2015 and 2024 (10 years).
Total imports within this period were N16.4 trillion or 8.7% of Nigeria's global exports.
During a Rose Garden event tagged "Liberation Day," Trump announced the tariffs in a move that would shape the global economy, amidst responses from countries.
Trump declared the start of what he called a new era of "fair trade," promising to "supercharge America's industrial base" and force open foreign markets long accused of shutting out U.S. goods.
"This is one of the most important days in American history," Trump said. "We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers."
Trump added that the reciprocal tariffs were "for countries that treat us badly. Our taxpayers have been ripped off for more than 50 years, but it is not going to happen anymore".
The new tariffs, which take immediate effect, apply to more than 50 countries. They include major trade partners like China, the European Union, India, and Japan, as well as developing economies in Asia, Africa, and Latin America.
Globally, Lesotho was the most hit with Americans bringing goods in from the small southern African country having to pay an additional 50% import tax.
The US has a big trade deficit with Lesotho, which sells textiles - including jeans - and diamonds to America, according to the US.
Other African countries hit with extra tariffs include 47% for Madagascar, 40% for Mauritius, 37% for Botswana and 30% for South Africa.
Nigeria's exports will be hit too, at a rate of 14%.
Kenya, Ghana, Ethiopia, Tanzania, Uganda, Senegal and Liberia were among those countries whose exports to the US will be subject to the baseline tariff of 10%. The US is not running a trade deficit with these countries.
'A valued partner'
The Nigerian government described the U.S. as a "valued trade and investment partner" but emphasised Nigeria's resolve to strengthen economic resilience amid global trade uncertainties.
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The statement by the government noted that Nigeria remains in active consultations with U.S. trade representatives and the World Trade Organization (WTO) to address the implications of the new tariffs.
This follows a recent meeting between the U.S. Ambassador and the Minister on March 26, 2025, where both nations reaffirmed their commitment to strengthening bilateral trade ties.
The statement highlighted the African Continental Free Trade Area (AfCFTA) as a critical avenue for reducing dependency on Western markets.
Nigeria is pushing for accelerated AfCFTA implementation, leveraging tools like the Pan-African Payment and Settlement System (PAPSS) to boost intra-African trade.
Dr. Muda Yusuf, economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), had allayed fears of Nigeria's vulnerability in the trade war.
He said, "The vulnerability of the Nigerian economy to shocks of the current trade war unleashed by President Trump may be very limited. Averagely, Nigeria's external trade exposure to the United States is about 10%."
