FG Turns U.S. Tariff Hike into Non-Oil Export Opportunity
By Patience Ikpeme
The Federal Government has said it will respond strategically to the new 14 percent import tariff imposed on Nigerian exports by the United States, viewing it as an opportunity to deepen non-oil sector development and build a more resilient economy.
Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, in a statement issued in Abuja on Sunday, said Nigeria is approaching the situation with pragmatism and a clear focus on expanding its non-oil export footprint.
Dr. Oduwole noted that the recent tariff measures by the U.S., including the imposition of a 14% duty on Nigerian goods, would particularly affect small and medium-sized enterprises (SMEs) that rely on the African Growth and Opportunity Act (AGOA) exemptions. These businesses, she said, are now confronted with rising costs and uncertain buyer commitments.
She pointed out that the development strengthens Nigeria’s commitment to boosting its non-oil exports by improving quality assurance, enhancing traceability systems, and ensuring Nigerian goods meet global standards. These efforts, according to her, will help Nigerian products gain wider market acceptance internationally.
The Minister also stated that the development serves as a timely reminder for Africa, and Nigeria in particular, to accelerate the implementation of the African Continental Free Trade Area (AfCFTA) and take steps to deepen regional trade integration. She added that Nigeria would leverage instruments such as the Pan-African Payment and Settlement System (PAPSS) to reduce trade costs and promote intra-African trade.
Despite the potential negative implications for global trade, Dr. Oduwole maintained that Nigeria is committed to economic resilience and export diversification in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
According to her, “The federal government of Nigeria acknowledges the recent tariff measures announced by the Government of the United States of America, including imposing a 14% tariff on Nigerian exports. While these developments potentially impact global trade negatively, under the administration of President Bola Ahmed Tinubu GCFR and the Renewed Hope Agenda, Nigeria remains firmly committed to building economic resilience and accelerating export diversification.”
She maintained Nigeria’s view of the U.S. as a key trade and investment partner, citing the March 26, 2025, visit of the U.S. Ambassador to the Ministry of Industry, Trade and Investment as a clear indication of both countries’ willingness to strengthen economic ties.
On the recent U.S. tariff announcements, she disclosed that Nigeria is actively engaging with American counterparts and the World Trade Organization (WTO), maintaining a constructive stance focused on arriving at solutions that benefit both economies.
“Since May 2023, Mr. President has remained actively committed to attracting and retaining much-needed investments from old and new friends of Nigeria,” she said.
The Minister highlighted a range of government interventions aimed at shielding Nigerian businesses from global tariff hikes. These include policies to expand market access, finance support mechanisms, infrastructure upgrades, and diplomatic initiatives to diversify off-take channels and mitigate trade risks.
Providing insight into the structure of Nigeria’s exports to the U.S., she said that the country’s exports have remained between $5–6 billion annually over the past two years. Of this, more than 90% comprises crude petroleum, mineral fuels, oils, and gas products. Fertilizers and urea account for 2–3%, while lead exports are valued at around $82 million or 1%. Agricultural products such as live plants, flour, and nuts make up less than 2% of Nigeria’s total exports to the U.S.
While oil continues to dominate exports, non-oil products—many of which had benefited from AGOA exemptions—are now exposed to potential disruption. The Minister said a new 10% tariff on key categories could undermine the competitiveness of Nigerian goods in the U.S., particularly in emerging and value-added sectors that are central to Nigeria’s diversification strategy.
She noted that businesses in the non-oil sector face serious challenges to pricing and access in one of Nigeria’s key export markets, and that the government is working to ensure that these disruptions are addressed with strategic interventions.
