Federal Gov’t Mulls 2025 Budget Review To Cushion Effect Of US Tariff Hike

The Nigerian government has said that it was considering an adjustment to its N54.99trn 2025 national budget as part of measures to respond to potential shocks of the United States’ global trade tariff hike.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, gave the hint on Monday at a Corporate Governance Forum organised by the Ministry of Finance Incorporated (MOFI) in Abuja.

Edun also acknowledged that the adverse effect of the US tariff on Nigeria will be through oil price plunge. He claimed that the government was making efforts to ramp up crude oil production to curtail any price effect.

“We are also focusing on non-oil revenue mobilisation by FIRS and Customs.

“Budget adjustment and prioritisation where possible, and also innovative non-debt financing strategies,” Edun listed the possible counter measures at the event that was held at Transcorp Hilton in Abuja on Monday.

Recall that US President Donald Trump had last week announced general global tariffs on all imports into the country, including Nigeria.

Nigeria-US trade has been in surplus in the last three years (2022-2024). According to official data, Nigeria’s export to the US is between $5bn to $6bn annually.

“Consequently, the tariff effect on exports is negligible if we sustain our oil and minerals export volume,” Edun told the gathering.

However, he claimed that Nigeria was positioned to withstand global trade disruptions, including the new United States import tariffs, a position that triggered a murmured disagreement from the crowd present at the event.

He said the administration was determined to attract investment, not just through policy rhetoric but by demonstrating corporate readiness and governance in state-owned enterprises.

Edun stressed that Nigeria remained relatively insulated due to early reforms and a shift in economic strategy.

The minister said that the government was prioritising non-oil revenue mobilisation through the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) to mitigate potential revenue shortfalls.

Edun said Nigeria was already pivoting its economic model toward private sector-led growth, equity-based financing, and strategic asset optimisation.

According to Edun, while the government accounts for 10 per cent of the gross domestic product (GDP), the private sector contributes 90 per cent.

He credited President Bola Tinubu’s administration with stabilising key macroeconomic indicators and laying the groundwork for sustainable growth.