Key points
- CPPE has urged the Federal Government to accelerate export diversification following the U.S. 12.5 per cent tariff on selected Nigerian exports.
- The think tank called for stronger manufacturing, greater value addition and deeper regional trade under AfCFTA.
- It advised the government to engage the U.S. through diplomatic channels to clarify implementation of the tariff.
- CPPE said the immediate impact on Nigeria would likely be limited because crude oil and petroleum products remain exempt.
Main story
The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to accelerate export diversification following the United States’ decision to impose a 12.5 per cent tariff on selected Nigerian exports.
In a policy brief released on Sunday, the centre said the new tariff highlights the need for Nigeria to build a more resilient and competitive export sector by reducing its dependence on crude oil.
CPPE urged the government to prioritise the expansion of non-oil exports, strengthen manufacturing competitiveness and promote greater domestic value addition to improve the global competitiveness of Nigerian products while creating more jobs.
The centre also called for deeper regional trade under the African Continental Free Trade Area (AfCFTA), saying wider access to African markets would help cushion the impact of shifting global trade policies.
It further advised Nigeria to strengthen labour standards and improve supply chain transparency to align with evolving international trade requirements.
CPPE recommended that the Federal Government engage the United States through diplomatic and trade channels to clarify the implementation of the new tariff measures and minimise potential adverse effects on Nigerian exporters, particularly those in the agriculture and manufacturing sectors.
According to the think tank, the latest tariff reflects a growing global trend towards protectionism and the increasing use of trade policy as a strategic economic tool.
However, it noted that the immediate impact on Nigeria’s economy is expected to be limited because crude oil, liquefied natural gas and other petroleum products, which account for more than 80 per cent of Nigeria’s exports to the United States, are exempt from the tariff.
The centre also observed that the United States ranked as Nigeria’s fifth-largest export destination in the first quarter of the year, accounting for 5.56 per cent of the country’s total exports valued at about N21.6 trillion. India, France, the Netherlands and Spain remained larger export markets during the period.
The issues
Although the direct impact of the tariff may be limited in the short term, it reinforces the need for Nigeria to diversify its export base and improve the competitiveness of non-oil products. Greater investment in manufacturing, value addition and regional trade could reduce the country’s exposure to external trade policy shocks.
What’s being said
“The new U.S. tariff underscores the need for Nigeria to build a more resilient and competitive export sector.” — Centre for the Promotion of Private Enterprise.
What’s next
The Federal Government is expected to assess the implications of the new tariff, engage U.S. authorities on its implementation and intensify efforts to boost non-oil exports through policy reforms and trade initiatives.
Bottom line
While the new U.S. tariff is unlikely to significantly affect Nigeria’s export earnings in the near term, it serves as another reminder that diversifying exports and strengthening domestic production are essential for long-term economic resilience.
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