Amid growing fears of a global recession sparked by the United States' aggressive tariff regime, Nigeria's economy faces increasing pressure. Yet, Nigeria's Minister of Finance and Coordinating Minister of the Economy, Wale Edun, insists the recent 14% U.S. tariff on Nigerian exports will have a "minimal impact"—a message of reassurance for the country's exporters, SMEs, and investors.
The global economic outlook turned gloomy after the U.S. administration imposed sweeping import tariffs, including 10% across the board and up to 34% on Chinese goods. The ripple effect has shaken financial markets worldwide—from Wall Street to Africa—causing major sell-offs, capital outflows, and weakened investor sentiment.
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The Nigerian Exchange Limited (NGX) hasn't been spared, with indicators pointing to reduced activity and declining confidence.
Despite strong corporate earnings, including robust dividends from top-tier banks and blue-chip firms, the market lost over ₦100 billion in a single week, suggesting broader macro pressures are weighing heavier than company performance.
Investor caution was clear:
- Total trades dropped by 30.9%
- Volume of shares traded fell 84.3% to 1.18 billion units
- Value of transactions plunged 92.8% to ₦28.87 billion
Market capitalization dipped by ₦600 billion, and the All-Share Index slid by over 1,200 points, highlighting a risk-off sentiment among investors.
Speaking at the Corporate Governance Forum in Abuja, Edun assured stakeholders that Nigeria's major exports—oil and minerals—are exempt from the new U.S. tariffs, shielding the bulk of trade revenue from impact.
Comparing the 14% tariff on Nigeria to Vietnam's 46% and China's 34%, Edun emphasized Nigeria's relatively favorable position.
However, he acknowledged the fragile state of global trade and the importance of vigilant economic management. The Ministry is monitoring international developments closely, especially potential capital outflows that could pressure the naira and broader economy.
For SMEs and local exporters, the message is cautiously optimistic: as long as oil and mineral exports remain steady, and diversification efforts continue, Nigeria could ride out this global storm better than many peers.
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