US tariffs won’t have much effect on Nigeria – Edun
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has stated that the recent 14 percent tariff imposed by the United States on Nigerian exports will have minimal impact on the Nigerian economy.
Edun made these comments during the inaugural Corporate Governance Forum organized by the Ministry of Finance Incorporated in Abuja on Monday. While acknowledging the seriousness of rising global tariff disputes, Edun emphasized that Nigeria remains largely shielded from significant effects, given that oil and mineral exports—Nigeria’s major exports to the U.S.—are exempt from the new tariffs.
He pointed out that the 14 percent tariff is relatively moderate compared to the 46 percent tariff imposed on Vietnam and the 34 percent on China. “Nigeria’s exports to the U.S. were N1.8 trillion, N2.6 trillion, and N5.5 trillion in 2022-2024, respectively. Fortunately, oil and mineral exports made up 92 percent, amounting to N5.08 trillion, while non-oil exports were only N0.44 trillion. Therefore, the impact of the tariff on exports is minimal if we maintain our oil and mineral export volumes,” Edun explained.
Despite his optimism, Edun acknowledged that the government’s economic management team is closely monitoring the evolving global situation. “We are revisiting the budget to examine the changes in assumptions that were used in its creation, considering the realities of the first quarter and future projections,” he added.
The 14 percent tariff imposed by U.S. President Donald Trump on Nigerian exports poses a significant risk to Nigeria’s $10 billion annual exports to the U.S., particularly threatening key sectors like agriculture, with experts and trade associations expressing concerns over the possibility of a global trade war.
According to the National Bureau of Statistics, Nigeria’s trade with the U.S. reached a total of N31.1 trillion between 2015 and 2024. A breakdown of the foreign trade report reveals that N16.4 trillion was recorded as exports, while imports amounted to N14.71 trillion, resulting in a trade surplus of N1.64 trillion.
The data showed that Nigeria’s exports to the U.S. were valued at N344.27 billion in 2015, N1.03 trillion in 2016, and N1.73 trillion in 2017. Exports continued to rise, reaching N1.82 trillion in 2022, N2.61 trillion in 2023, and N5.52 trillion in 2024. However, there was a notable dip in 2020, with exports falling to N382.19 billion due to the pandemic.
Earlier, the Federal Government acknowledged that several of Nigeria’s oil and non-oil exports would face challenges as a result of the new U.S. tariffs. The tariff could potentially undermine the competitiveness of Nigerian products in the U.S. market, a concern raised by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, in a statement on Sunday.
