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Daniel Adaji
Nigeria’s non-oil exports face mounting pressure as the federal government races to counter the impact of new U.S. tariff measures.
The United States, under a sweeping global trade regime introduced by President Donald Trump, has imposed a 14 per cent tariff on Nigerian exports, prompting key stakeholders to sound the alarm over the future of the country’s export diversification efforts.
The Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, convened an emergency meeting this week, signalling a potential policy shift to protect Nigeria’s fragile non-oil export base.
Director of Information and Public Relations at the Finance Ministry, Mohammed Manga, confirmed the meeting and outlined efforts to assess the fiscal and economic implications of the U.S. decision.
Although crude oil — which comprises over 90 per cent of Nigeria’s annual $5–$6bn exports to the U.S. — remains unaffected directly by the tariffs, non-oil sectors are not as fortunate.
Fertilizers, lead, and agricultural products such as nuts and flour, which make up less than 5 per cent of total exports, are now vulnerable to price distortions and market uncertainty.
“While oil has long dominated Nigeria’s exports to the U.S., non-oil products—many previously exempt under AGOA—now face potential disruption,” Manga said.
In response, the EMT has set up a special sub-committee to conduct a detailed review of both the direct and indirect economic impacts of the tariffs, as well as the ongoing drop in global commodity prices.
The sub-committee includes representatives from the Federal Ministry of Finance, the Ministry of Budget and Economic Planning, and the Central Bank of Nigeria (CBN) and has already held its inaugural meeting.
The development comes at a precarious time for the Tinubu administration’s Renewed Hope Agenda, which places significant emphasis on economic diversification and expanding non-oil revenue sources.
Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, acknowledged the looming challenges but expressed cautious optimism that the policy shock could ultimately spur Nigeria to deepen its non-oil export base.
“We consider the United States a valued trade and investment partner,” Oduwole said.
“However, these new tariffs underscore the urgency of building resilience into our economy and accelerating export diversification,” she added.
In a research note dated April 9, 2025, U.S. investment bank J.P. Morgan advised investors to exit Nigerian T-bills, citing increasing macroeconomic risks. The bank linked its caution to falling oil prices and renewed global trade tensions, warning that these factors could further undermine Nigeria’s economic stability.
With oil prices trending below $60 per barrel and international buyers reassessing their positions, Nigeria’s dependence on a narrow export base is once again under the spotlight.
The current scenario, experts argue, may force the country to fast-track reforms and revamp its export infrastructure or risk a collapse in non-oil trade.