The Federal Government of Nigeria has acknowledged the recent imposition of a 14% tariff on Nigerian exports by the United States, stating its commitment to mitigating the impact while accelerating economic diversification.
In a statement signed by the Honourable Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, which was released on Sunday, the government noted that while oil has long dominated Nigeria’s exports to the U.S., non-oil products—many previously exempt under the African Growth and Opportunity Act (AGOA)—now face potential disruption.
It added that the new 10% tariff on key categories may impact the competitiveness of Nigerian goods in the U.S.
“For businesses in the non-oil sector, these measures present destabilizing 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 stated.
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.
With the new tariffs, Nigerian businesses in value-added and agro-processing sectors may face reduced competitiveness in the U.S. market.
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 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 favorable terms.
The government described the U.S. as a “valued trade and investment partner” but emphasized Nigeria’s resolve to strengthen economic resilience amid global trade uncertainties.
The statement 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.
