The Nigerian {Economic} Summit Group (NESG) has raised issues over the continued commerce battle between the US and China, warning that Nigeria should take proactive measures to mitigate its affect.
The advisory follows the discharge of the NESG International Commerce Alert: 2024Q4 & Full Yr 2024, which highlighted Nigeria’s vulnerability to world commerce disruptions, significantly in its import-dependent industrial sector.
“The commerce battle between the U.S. and China must be hedged towards. Nigeria must divert its commerce sample in the direction of international locations which can be unaffected by the U.S. tariffs. This would scale back tariff-induced will increase in import payments, contemplating that the nation’s import-dependent non-oil industrial sector is very susceptible,” the report famous.
The USA imposed a ten% tariff on Chinese language imports in February 2025, with plans to extend it by one other 10% in April.
In retaliation, China introduced extra tariffs of 10-15% on sure U.S. imports beginning March 10, 2025, together with a sequence of export restrictions concentrating on designated U.S. entities.
These measures are anticipated to disrupt world provide chains, gradual world commerce development, and drive up the costs of worldwide traded commodities.
Given Nigeria’s heavy reliance on imported manufactured items and uncooked supplies, NESG warns that the nation might face vital {economic} challenges if these commerce tensions escalate additional.
Nigeria’s vulnerability to commerce protectionism
China remained Nigeria’s largest buying and selling accomplice in This autumn 2024, adopted by India, Belgium, the U.S., and France. Probably the most imported commodities through the interval included refined petroleum merchandise, sugar cane, and spare components.
Nonetheless, Nigeria’s reliance on imports, significantly from China, makes it prone to cost fluctuations and provide chain disruptions stemming from the U.S.-China commerce battle.
The report additionally highlighted Nigeria’s dependence on imported uncooked supplies, which poses a serious {economic} threat. In This autumn 2024, the nation’s uncooked materials imports totaled N2.1 trillion, considerably outweighing exports, which stood at simply N0.7 trillion.
Extra insights
Nairametrics earlier reported that China and India have emerged as Nigeria’s largest sources of imports, accounting for a mixed N20.31 trillion in complete imports based mostly on the newest commerce report from the Nationwide Bureau of Statistics (NBS) for 2024.
- Based on the report, China accounts for N14.14 trillion of Nigeria’s imports in 2024 whereas India accounts for N6.17 trillion.
- An rising pattern from the 2024 commerce information means that Nigeria is more and more tilting in the direction of Jap markets, significantly China and India, in its commerce relations.
- Additional reinforcing this Jap pivot, in December 2024, the Nigerian authorities sought South Africa’s endorsement to realize full membership within the G20, BRICS, and the BRICS New Improvement {Bank} (NDB).
The BRICS bloc, which incorporates Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the UAE, presently accounts for roughly 37% of worldwide GDP and is acknowledged as a big driver of worldwide {economic} development.
