Nigeria’s Economy Will Not Be Adversely Affected By 14% Trump Tariff Imposition
The Nigerian government has expressed confidence that the country’s economy will not be severely impacted by the recent 14% tariff imposed by the United States on Nigerian exports.
According to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the effect of the tariff will be negligible due to the exclusion of oil and mineral exports, which account for 92% of Nigeria’s exports to the US.
Speaking at the inaugural Corporate Governance Forum organized by the Ministry of Finance Incorporated in Abuja, Edun stated that Nigeria’s exports to the US were valued at N1.8 trillion, N2.6 trillion, and N5.5 trillion in 2022, 2023, and 2024, respectively. He noted that the tariff will only affect non-oil exports, which accounted for a mere N0.44 trillion in value.
While acknowledging the seriousness of escalating global tariff conflicts, Edun emphasized that Nigeria remains relatively insulated from severe impacts. He highlighted the comparatively moderate 14% tariff imposed by the US, compared to Vietnam’s 46% and China’s 34% tariffs.
The minister, however, admitted that the government’s economic management team is closely monitoring the global situation and is reviewing the budget to adjust to the new reality. “We are going back to the drawing board to look at our budget all over again, because we have to see what changes have been made in the assumptions that underlay the production of that budget and the reality over the first quarter and even projected into the future,” he said.
Edun also praised the stabilisation achieved under President Bola Tinubu’s administration and highlighted the government’s deliberate pivot from debt towards equity and revenue generation. He cited successful initiatives like the Highway Development and Management Initiative, which has seen private sector involvement in the Benin-Asaba highway concession, significantly reducing transport time from four hours to one hour.
The Chairman, Board of Directors, Ministry of Finance Incorporated, Dr Shamsuddeen Usman, said the forum was one of the rare public appearances the organisation makes to demonstrate its commitment to institutionalising results-based corporate governance in Nigeria’s public sector.
Usman explained that MOFI had implemented most elements of the newly introduced Corporate Governance Scorecard, including defining clear visions, missions, and long-term strategic plans. He added that MOFI had established strong internal structures, such as a robust internal audit system reporting directly to the board, comprehensive conflict-of-interest guidelines, whistleblower policies, and risk management frameworks to ensure full transparency and accountability.
The Managing Director and Chief Executive Officer of MOFI, Dr Armstrong Takang, lamented the poor governance records among Nigerian state-owned enterprises, disclosing that out of 52 companies in MOFI’s portfolio, only 20 had published audited financial accounts over the past three years.
Takang highlighted that governance failures were often due not only to ineffective decisions but also to delayed or avoided decision-making. He pointed out that such inaction significantly impacted economic growth and hindered Nigeria’s ambition to become a $1 trillion economy in the near future.
As Nigeria navigates the complexities of the global economy, the government’s focus on corporate governance reforms and its efforts to reposition state-owned enterprises are seen as critical steps towards achieving economic growth and stability. With the US tariff impact expected to be minimal, Nigeria is poised to explore new opportunities for growth and development, driven by a commitment to good governance and private sector investment.
