US Tariff Debacle: Nigeria may reset budget as FG sets up assessment sub-committee

There is the possibility of an annual budget reset as the Federal Government has constituted a subcommittee to evaluate the potential economic impact of the recent tariff measures announced by the United States government.

The decision followed a meeting of the Economic Management Team (EMT), chaired by Minister of Finance and Coordinating Minister of the economy, Wale Edun, according to a statement issued on Friday, April 11, by Mohammed Manga, Director of Information and Public Relations at the ministry, Mohammed Manga.

The US President Trump slammed a 14 per cent tariff on Nigerian exports, arguing that Nigeria had already imposed a 27 per cent tariff on US exports to the country.

He, however, exempted oil and minerals-related exports from the new tariff.

A few days later, Edun said Nigeria is well-positioned to withstand global trade disruptions, including the United States import tariffs.

He said plans were underway for possible budget adjustments and prioritisation where possible.

To assess the impact of the tariffs, Manga said the EMT convened earlier in the week with key ministries and agencies to review the fiscal and macroeconomic implications of emerging global trade dynamics.

He said the EMT noted that while Nigeria’s major export — crude oil — has not been directly targeted by the new tariffs, the policy shift has coincided with a dip in international oil prices, raising concern over potential revenue and budgetary pressures.

“To support evidence-based policymaking, the EMT has established a subcommittee tasked with conducting a detailed review of the direct and indirect economic impacts of both the emerging tariff measures and the global commodity price shifts,” Manga said.

“The subcommittee includes representatives from the Ministry of Finance, the Ministry of Budget and Economic Planning (including the budget office of the Federation), and the Central Bank of Nigeria (CBN).”