Nigeria stands among the 48 nations running a trade deficit with the United States, underscoring the shifting economic ties between both countries.
This development comes as U.S. President Donald Trump enforces aggressive trade policies, targeting key allies and top trading partners. In a major shake-up, Trump announces sweeping tariffs on imports from Canada, Mexico, and China, citing concerns over illegal immigration and the influx of illicit substances like fentanyl into the U.S.
Starting February 4, 2025, a 25% tariff takes effect on all Canadian and Mexican imports, with additional 10% duties imposed on Canadian oil and Chinese goods. These measures spark immediate retaliation, with Canadian Prime Minister Justin Trudeau responding with equivalent tariffs on up to C$155 billion worth of U.S. imports. Mexico also considers countermeasures, while China vows to introduce tariffs that could impact electronics and apparel industries.
Although Nigeria is not directly affected by these tariffs, its trade relationship with the U.S. remains significant. In 2024, Nigeria exports approximately $5.29 billion worth of goods to the U.S., while importing $3.88 billion, resulting in a trade surplus of $1.4 billion in Nigeria’s favor. By September 2024, total trade between both nations stands at $9.1 billion.
A year earlier, total trade volume between Nigeria and the U.S. reaches $8.27 billion, with Nigeria maintaining a $3.1 billion trade surplus. However, overall trade figures plummet by nearly 73% over the past decade, largely due to the U.S. reducing its crude oil imports from Nigeria.
Historical data reveals that in 2011, trade between both countries is valued at $74 billion, with Nigeria enjoying a $14 billion surplus. Between 2005 and 2014, total trade amounts to $281.7 billion, with Nigeria holding a massive $200.2 billion surplus. Despite this decline, the U.S. remains a crucial trade partner, with significant foreign direct investment (FDI) in Nigeria’s petroleum, mining, and wholesale trade sectors.
U.S. exports to Nigeria primarily include vehicles, wheat, machinery, fuels, and plastics, while Nigeria exports crude oil, cocoa, cashew nuts, and animal feed to the U.S. The Nigerian entertainment industry also attracts U.S. investment, with major film and media companies expanding operations in the country. Additionally, Nigeria benefits from preferential trade programs like the African Growth and Opportunity Act (AGOA), which facilitates duty-free access to the U.S. market for specific goods.
As the U.S. adopts a protectionist stance under Trump’s “America First” policy, Nigerian policymakers urge a “Nigeria First” approach. Analysts suggest that a strategic reassessment of bilateral trade relations helps Nigeria maximize economic opportunities while safeguarding its interests.
Trade indicators suggest that Nigeria’s performance between 2020 and 2023 lags compared to the previous decade (2014-2019). However, proactive measures, including investment-driven reforms and trade expansion initiatives, help reverse this trend. Restoring trade volumes to pre-2020 levels significantly boosts Nigeria’s economy, increasing foreign exchange inflows, strengthening the naira, and benefiting the wider population.
Nigeria’s Minister of Industry, Trade, and Investment, Jumoke Oduwole, assures that the country is not overly concerned about Trump’s policies. Meanwhile, the Nigerian government continues to monitor global trade tensions closely. Special Adviser on Media and Public Communications to President Tinubu, Sunday Dare, emphasizes that the ongoing tariff disputes between the U.S. and Canada have widespread implications for global trade, urging Nigeria to prioritize its own economic stability.
“There’s a clear shift happening,” Dare notes. “America First, Canada First—it’s time for Nigeria First. We must put our national interests ahead in all economic decisions.”
By positioning itself strategically in this evolving global trade landscape, Nigeria secures long-term economic benefits and enhances its standing in international commerce.
