April 19, 2025 — Nigeria's export sector faces significant challenges following the U.S. government's imposition of a 14% tariff on Nigerian goods. This move, part of President Donald Trump's broader trade policy, threatens to disrupt the $10 billion annual trade relationship between the two nations.
The new tariffs, effective from April 9, 2025, target non-oil exports, including agricultural products and manufactured goods. While crude oil, which constitutes over 90% of Nigeria's exports to the U.S., remains exempt, the non-oil sector is poised to suffer. The Manufacturers Association of Nigeria (MAN) warns that these tariffs could render Nigerian products less competitive, potentially leading to a loss of up to ₦2 trillion in agricultural exports.
A recent report by Strategy&, the strategy consulting arm of PwC, highlights Nigeria's vulnerability due to its reliance on the African Growth and Opportunity Act (AGOA). AGOA, which allows duty-free access to the U.S. market for eligible African countries, is set to expire in September 2025. The report suggests that the new tariffs could jeopardize AGOA benefits, further diminishing Nigeria's export competitiveness.
In the first two months of 2025, the U.S. imported $643.1 million worth of Nigerian goods, marking a 32.4% decline compared to the same period in 2024. This downturn reflects the immediate impact of the tariffs on trade volumes.
The Nigerian government has yet to announce retaliatory measures, opting instead for diplomatic engagement to resolve the trade tensions. Analysts caution that without swift action, the tariffs could exacerbate Nigeria's economic challenges, including foreign exchange shortages and budgetary constraints.
As the situation unfolds, stakeholders in Nigeria's export sector are urged to monitor developments closely and explore alternative markets to mitigate potential losses.
