The Federal Government has disclosed that it is consulting with the United States and the World Trade Organisation (WTO) to evolve a mutually beneficial solutions to the 14 percent tariff imposed on Nigerian export by U.S.
The government stated that it considers the United States a valued trade and investment partner, bound by shared values and mutual economic interests, while acknowledging the recent tariff imposition.
The Federal Government position was conveyed by the Minister of Industry, Trade and Investment Dr. Jumoke Oduwole on Sunday through a press statement in Abuja.
According to Dr. Oduwole, “The Federal Government acknowledges the recent tariff measures announced by the government of the United States, including imposing a 14 per cent tariff on Nigerian exports.
“Nigeria remains actively engaged in consultations with U.S. counterparts and the WTO, approaching evolving trade dynamics with pragmatism and a commitment to mutually beneficial solutions”.
She pointed out that “The Federal Government considers the United States a valued trade and investment partner, bound by shared values and mutual economic interests,” and stressed that “The U.S. Ambassador’s visit to the ministry recently, reaffirmed our joint commitment to strengthening economic ties that benefit both economies.”
According to her, while oil has long dominated Nigeria’s exports to the U.S, non-oil products many previously exempt under African Growth and Opportunity Act (AGOA), now face potential disruption.
Acknowledging that “A new 10 percent tariff on key categories may impact the competitiveness of Nigerian goods in the U.S. for businesses in the non-oil sector.”
Dr. Oduwole highlighted that “The government is also expanding alternative market access opportunities and ensuring off-take diversification to reduce and mitigate trade risks.”
She explained that “Nigeria’s exports to the U.S. over the last two years has consistently ranged between five to six billion dollars annually. A significant portion over 90 percent comprises crude petroleum, mineral fuels, oils and gas products.
“The second-largest export category, accounting for approximately two to three per cent, includes fertilisers and urea, followed by lead, representing around one per cent of total exports.
This is valued at approximately 82 million dollars”.
The minister said President Bola Tinubu has since May 2023, remained actively committed to attracting and retaining much-needed investments from old and new friends of Nigeria.
She stressed that the Federal Government was implementing a range of interventions in policy, financing, infrastructure and diplomacy to help Nigerian businesses remain competitive amidst regional and global tariff hikes.
Oduwole said Nigeria also exported smaller quantities of agricultural products such as live plants, flour and nuts, which account for less than two per cent of total exports to the U.S.
The minister acknowledged that the tariff measures present destabilising challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to diversification agenda.
She noted that Small Medium-size Enterprises (SMEs) building their business models around AGOA exemptions would face the pressures of rising costs and uncertain buyer commitments.
However, the Minister said the development would boost Nigeria’s non-oil exports as well as meeting global standards and improving market acceptance into more economies across the globe.
Also, she emphasised the urgent need to enhance intra-African trade through the African Continental Free Trade Area (AfCFTA), adding that the ministry was committed to ensuring a strong conducive business environment.
Dr. Oduwole pledged the Federal Government’s firm commitment to building economic resilience and accelerating export diversification.
