US Tariffs Threaten Nigeria’s Oil, Non-Oil Exports, FG Warns

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The Federal Government has raised concerns over the potential negative impact of newly imposed U.S. tariffs on Nigeria’s exports, warning that the policy could weaken trade relations and reduce the competitiveness of Nigerian goods in the American market.

The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, confirmed the development in a statement issued in Abuja, marking the government’s first official response since U.S. President Donald Trump announced the tariffs three days earlier. The policy, introduced under Trump’s “Make America Wealthy Again” initiative, imposes taxes as high as 50% on imports, drawing criticism from the European Union and exporting nations.

Experts warn that the move could lead to higher consumer prices, reduced manufacturing activity, and weaker demand for Nigerian oil—one of the country’s key exports to the U.S. Nigeria’s annual exports to the U.S. average between **$5 billion and $6 billion, with crude oil, mineral fuels, and gas products making up over 90% of shipments. Fertilizers, urea, and lead contribute another 2-3%, while agricultural products like plants, flour, and nuts account for less than 2%.

Oduwole noted that while oil exports dominate, non-oil products—previously benefiting from exemptions under the African Growth and Opportunity Act (AGOA) —now face a 10% tariff, which could disrupt market access and price competitiveness. This poses a particular challenge for small and medium enterprises (SMEs) that rely on AGOA benefits, as rising costs and buyer uncertainty may threaten their operations.

The minister emphasized that the tariffs reinforce Nigeria’s need to diversify and strengthen non-oil exports** by improving quality control, traceability, and compliance with global standards. The goal is to expand market access beyond the U.S. and reduce dependence on oil revenues.

The policy marks a sharp departure from decades of free-trade policies that shaped the global economy post-World War II. Nigeria now faces the urgent task of adapting its trade strategies to mitigate economic disruptions while accelerating its export diversification efforts.