Wale Edun, Minister of Finance
U.S. Tariff Hike on Nigerian Exports to Have Minimal Economic Impact, Says Finance Minister
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has downplayed the potential impact of the recent 14% tariff imposed by the United States on Nigerian exports, stating that the Nigerian economy remains largely insulated.
Speaking at the inaugural Corporate Governance Forum organized by the Ministry of Finance Incorporated in Abuja on Monday, Edun noted that while global tariff disputes are a growing concern, Nigeria’s major exports to the U.S.—oil and minerals—are exempt from the new levy. He highlighted that the 14% tariff is relatively low compared to the 46% and 34% duties imposed on Vietnam and China, respectively.
“Nigeria’s exports to the U.S. stood at N1.8 trillion in 2022, N2.6 trillion in 2023, and N5.5 trillion in 2024. Crucially, oil and mineral exports accounted for 92% (N5.08 trillion) of this total, while non-oil exports were just N0.44 trillion. As long as oil and mineral exports remain stable, the tariff’s effect will be negligible,” Edun explained.
Despite his reassurances, the minister acknowledged that the government’s economic team is closely tracking global developments. “We are reviewing the budget to reassess initial assumptions in light of first-quarter realities and future projections,” he added.
The tariff, introduced by former U.S. President Donald Trump, poses a risk to Nigeria’s $10 billion annual exports to the U.S., particularly affecting agricultural and other non-oil sectors. Trade experts warn that the move could trigger broader trade tensions.
Data from the National Bureau of Statistics reveals that Nigeria’s trade with the U.S. totaled N31.1 trillion between 2015 and 2024, with exports at N16.4 trillion and imports at N14.71 trillion, yielding a N1.64 trillion surplus. While exports surged from N344.27 billion in 2015 to N5.52 trillion in 2024, they dipped to N382.19 billion in 2020 due to pandemic disruptions.
Earlier, the Federal Government admitted that the new tariffs could hinder the competitiveness of some Nigerian exports in the U.S. market. The Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, expressed concerns over the potential challenges for both oil and non-oil sectors.
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