Abuja, Dr Jumoke Oduwole, the Minister of Industry, Trade and Investment, says the new tariffs announced last week by Donald Trump, the US President, will undermine competitiveness of Nigerian exports in the US..
She said the tariffs could disrupt trade relations between Nigeria and the US as they would particularly affect the competitiveness of Nigerian products in the US market.
Oduwole made her observations on the implications of the US new tariffs on Nigeria in a statement on Sunday.
The minister said the value of Nigeria’s exports to the U.S. averaged $5 to $6 billion annually in the last two years of which over 90 per cent comprised crude petroleum, mineral fuels, oils, and gas products.
“The second-largest export category, accounting for approximately 2–3 per cent, includes fertilizers and urea, followed by lead, representing around 1 per cent of total exports (valued at approx $82 million).
“Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than 2 per cent of our total exports to the U.S.
“While oil has long dominated Nigeria’s exports to the US, non-oil products, many previously exempt under AGOA, now face potential disruption.
“A new 10 per cent 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 destabilising challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda,” she said.
The minister said smaller businesses, which relied on AGOA exemptions, would feel the brunt of the new tariffs, with rising costs and uncertain buyer commitments likely to make market access even more difficult.
She, however, said this development would strengthen Nigeria’s resolve to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards and improve market acceptance into more economies across the globe.
