Trump’s 14% tariff on Nigerian exports threatens overseas alternate inflows and {economic} stability – NACCIMA President
The current imposition of a 14% tariff on Nigerian exports to america by President Donald Trump has raised issues about its potential to considerably scale back overseas alternate inflows and destabilize Nigeria’s financial system.
President of the Nigerian Affiliation of Chambers of Commerce, Trade, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, has warned that this improvement jeopardizes Nigeria’s crucial export market, which incorporates crude oil, liquefied pure gasoline, and agricultural merchandise.
Talking on the 2025 Vanguard {Economic} Discourse, Oye highlighted the far-reaching penalties of the tariff hike, stating, “The ripple results of diminished demand may precipitate job losses, {economic} instability, and a decline in important overseas alternate inflows, significantly for our non-oil sectors.”
He emphasised the necessity for Nigeria to confront these challenges head-on, because the tariff threatens to undermine key sectors of the financial system.
America First coverage
The tariff hike is a part of Trump’s “America First” coverage, which has launched a paradigm shift in world commerce dynamics.
Oye described this shift as a transfer away from cooperative, rules-based buying and selling programs underneath the World Commerce Group (WTO) to an atmosphere fraught with uncertainty.
“This transformation not solely disrupts world markets and provide chains however poses an acute threat to our aggressive standing in worldwide commerce,” he mentioned.
Impression on SMEs and innovation
Past tariffs, Oye pointed to broader ramifications of U.S. insurance policies, together with a major lower in funding for initiatives that empower Africa’s start-ups.
He cited the $51 million minimize from america Growth Fund, which impacts international locations like Nigeria and Kenya.
“The grants beforehand allotted to our SMEs are crucial for nurturing innovation and entrepreneurship inside our native economies,” Oye remarked.
He lamented the shortage of assist for small and medium enterprises (SMEs), that are important to Nigeria’s {economic} development. With out satisfactory funding and coverage assist, SMEs face challenges in scaling operations and driving innovation.
Strategic pathways for {economic} resilience
Regardless of the challenges, Oye expressed optimism about Nigeria’s potential to show adversity into alternative.
- He referred to as for deeper engagement with the African Continental Free Commerce Space (AfCFTA) to encourage intra-African commerce and strengthen regional provide chains.
“Collectively, we are able to create a extra built-in and affluent African market,” he mentioned.
- Oye additionally pressured the significance of increasing commerce partnerships past conventional markets, urging Nigeria to forge relationships with rising economies resembling China, India, and Brazil.
- Strategic funding in transport and logistics infrastructure, he famous, is crucial for enhancing market accessibility and attracting overseas direct funding.
Lastly, Oye emphasised the necessity to put money into Nigeria’s best asset—its individuals. “We should emphasize vocational coaching and schooling to domesticate a talented workforce prepared to satisfy the calls for of future industries,” he mentioned.
By empowering human capital and fostering innovation, Nigeria can construct a resilient financial system able to weathering world commerce disruptions.
What it’s best to know
Trump on Wednesday introduced a 90-day pause on newly carried out reciprocal tariffs affecting dozens of commerce companions in a dramatic coverage reversal, simply hours after they took impact.
- The pause comes alongside a major escalation in duties on Chinese language imports, which had been hiked to 125% efficient instantly. The choice marks a serious shift within the administration’s commerce technique after mounting strain from world markets, enterprise leaders, and buyers involved about recession dangers.
- The upper tariffs had focused 56 international locations and the European Union with duties exceeding 30%, sparking market volatility. Below the brand new association, these international locations will now face a baseline tariff of 10%, besides China.
In keeping with a White Home official, over 75 international locations have reached out to Washington looking for to barter revised commerce agreements. Trump emphasised that none of them have retaliated, “at my robust suggestion.”
