Following the United States' 14 per cent tariff increase on Nigerian exports, the federal government says it is developing a strategic, non-retaliatory response aimed at strengthening the country's export capacity and diversifying trade destinations.
Minister of Industry, Trade and Investment, Jumoke Oduwole, disclosed that the government is targeting access to 250 international markets while doubling down on the African Continental Free Trade Area (AfCFTA) to support Nigerian exporters, especially MSMEs.
Speaking at a media briefing in Abuja, Oduwole acknowledged that while the tariff poses a serious challenge to Nigerian exporters—particularly in sectors covered under the African Growth and Opportunity Act (AGOA)—the federal government is focused on long-term trade resilience rather than short-term reaction.
"The good thing is that we're responding. We're not reacting or retaliating. This disruption affects the entire world. We don't want the global economy to slip into a recession, and we certainly don't want retaliation," she said.
She warned that with Africa accounting for just about 3 per cent of global trade, the continent risks becoming collateral damage amid growing trade tensions between global economic powers.
The U.S. remains a strategic trade partner to Nigeria, with oil exports constituting the bulk of Nigeria's trade under AGOA. Other rising sectors include fertilizers, urea, and lead. Oduwole said government engagement is ongoing with businesses in these sectors to mitigate the impact of the new tariff regime.
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"We're also looking at MSMEs. Although they make up just 2 per cent of AGOA-covered exports, they face real disruption. That's why we're enabling them to diversify into other markets," the minister noted.
Oduwole reiterated the government's commitment to making the AfCFTA work for Nigerian exporters, especially women-led, youth-led, and informal sector businesses.
"We're bullish about AfCFTA. It represents a massive opportunity for MSMEs, who already contribute nearly 50 per cent to Nigeria's GDP. It allows them to attract foreign exchange by exporting across the continent," she said.
She also emphasized the government's broader export agenda, highlighting efforts around digital trade, tax reform, business services export, and the use of special economic zones.
"Our plan is structured. We have an eight-point agenda, and accelerating diversification is a key component. We're implementing targeted strategies, looking at what works for our people and our economy."
Oduwole added that since President Tinubu assumed office in 2023, Nigeria has entered several government-to-government agreements that are now beginning to bear fruit. "Trade is a continuum," she said, "and our response is part of a broader strategy to position Nigeria competitively on the global stage."
