The Federal Government has officially responded to the recent decision by former U.S. President Donald Trump to impose a 14% tariff on Nigerian exports, a move justified by claims that Nigeria maintains a trade surplus with the United States.
Bizwatch Nigeria recalls that the tariff, announced under Trump’s administration, marks a significant shift in trade relations between the two countries. The decision has sparked concerns over its potential effects on Nigeria’s economy, particularly in the non-oil export sector.
In a statement issued on Sunday, Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, acknowledged the development and expressed the government’s readiness to manage the fallout while intensifying efforts towards economic diversification.
According to the minister, although crude oil has traditionally comprised the bulk of Nigeria’s exports to the U.S., many non-oil products — previously enjoying preferential treatment under the African Growth and Opportunity Act (AGOA) — now risk serious disruption due to the newly imposed tariffs.
She further noted that the introduction of a 10% tariff on specific product categories could erode the price competitiveness of Nigerian goods within the U.S. market.
“These new measures pose serious challenges to price competitiveness and market access for non-oil businesses, particularly in sectors critical to our diversification strategy such as value-added and emerging industries,” the statement read.
The statement highlighted that small and medium-sized enterprises (SMEs) that built their export strategies around AGOA exemptions are now likely to face increasing costs and wavering buyer confidence.
It was also disclosed that Nigeria’s annual exports to the United States have ranged between $5 billion and $6 billion over the past two years, with crude oil and mineral fuels comprising more than 90% of total export value. Meanwhile, non-oil exports—such as fertilizers, urea, lead, and various agricultural products—contribute less than 5% to overall shipments. The government expressed concern that the new tariff regime could further diminish the competitiveness of Nigeria’s value-added and agro-processing exports in the U.S. market.
Nevertheless, Dr. Oduwole stressed that the situation presents an opportunity for Nigeria to redouble efforts towards diversifying its export base and improving compliance with global trade standards.
“We are responding to this challenge with a practical and focused strategy—transforming global trade headwinds into opportunities to broaden our non-oil export base and reinforce the resilience of our economy,” she stated.
She also affirmed that the Tinubu-led administration has already implemented a suite of policy, financing, and infrastructural initiatives to support local businesses in adapting to the new trade reality. These measures include expanding Nigeria’s presence in alternative export markets beyond the United States, boosting quality assurance and traceability systems for Nigerian exports, and intensifying trade diplomacy to negotiate more favourable trade terms.
