FG raises alarm over impact of Trump’s tariffs on Nigerian exports
The Federal Government is concerned about the damaging impact of recently imposed US tariffs on Nigeria's oil and non-oil exports.It cautioned that the sanctions could strain trade relations and diminish Nigerian products' competitiveness in the US market.
Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, replied to the tariff decision on Sunday, stating that the move will reduce Nigerian goods' competitiveness in the US market.
According to the minister, Nigerian exports to the United States have averaged $5 billion to $6 billion each year over the last two years.
According to Oduwole, "a significant portion (of Nigeria's exports)—over 90%—consists of crude petroleum, mineral fuels, oils, and gas products." Fertilisers and urea are the second-largest export sector, accounting for roughly 2-3%, followed by lead, which accounts for about 1% of total exports (worth approximately $82 million).
"Nigeria also exports smaller quantities of agricultural products such as live plants, wheat, and nuts, accounting for less than 2% of total exports to the United States.
"While oil has long dominated Nigeria's exports to the United States, non-oil products—many of which were previously excluded under AGOA—may now face interruption.
"A new 10% tariff on key categories may affect the competitiveness of Nigerian commodities in the United States. For non-oil industries, these policies pose destabilising obstacles to pricing competitiveness and market access, particularly in developing and value-added sectors critical to our diversification goal."
The minister also stated that the new tariff would disproportionately affect smaller enterprises, particularly those that benefit from the African Growth and Opportunity Act exemptions.
She cautioned that escalating expenses and uncertain customer commitments could further impede their entrance to the US market.
Trump's tariff decision on Wednesday sent shockwaves through the global financial market.
Oil and commodity prices fell, prompting investors to flock to government bonds for safety.
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