‘New 12.5% US Tariff Will Have Minimal Impact On Nigeria’s Economy’

The Centre for the Promotion of Private Enterprise (CPPE) has said the new 12.5 per cent tariff imposed by the United States government on imports from Nigeria is unlikely to have a significant impact on the country’s economy.

In a policy brief released on Sunday, the director/CEO of CPPE, Dr. Muda Yusuf noted that while the tariff affects about sixty U.S. trading partners, Nigeria’s exposure is limited because the bulk of its exports to America are exempted.

According to Yusuf, Nigeria’s exports to the United States are heavily concentrated in crude oil, liquefied natural gas and other petroleum products, which account for more than 80 per cent of Nigeria’s merchandise exports to the U.S.

“These products have been exempted from the new tariff measures, leaving the majority of Nigeria’s trade with America unaffected. From Nigeria’s perspective, the economic impact of the tariffs is unlikely to be significant.”

He also cited data from Nigeria’s first-quarter 2026 merchandise trade statistics, showing that total exports stood at approximately N21.6 trillion.

Of that figure, exports to the United States accounted for only 5.56 per cent. By comparison, India accounted for 13.09 per cent, France 9.29 per cent, Netherlands 9.22 per cent, and Spain 7.68 per cent. The U.S. ranked as Nigeria’s fifth-largest export destination during the quarter.

He stated that these trade patterns significantly moderate Nigeria’s exposure to the new tariff regime, acknowledging that some non-oil exporters, particularly in agriculture and manufacturing, may experience reduced competitiveness in the U.S. market.

CPPE CEO assessed that the new tariff represents a continuation of the Trump administration’s reciprocal tariff policy, now restructured under section 301 of the U.S. Trade Act, following the judicial invalidation of earlier measures.

The U.S. cited allegations relating to forced labour as the statutory basis. CPPE said while the legal foundation has changed, the underlying objective remains the same: protecting U.S. domestic industries and strengthening American manufacturing competitiveness.

Despite the limited direct impact, Yusuf said the development reflects a broader structural shift toward *protectionism and the strategic use of trade instruments.

He urged Nigeria to place stronger emphasis on export diversification, enhanced manufacturing competitiveness, increased domestic value addition, and deeper regional integration under the African Continental Free Trade Area (AfCFTA).

The Centre also called for sustained efforts to strengthen labour standards, improve supply chain transparency, and engage proactively with the United States through diplomatic and trade channels to seek clarity and minimize adverse effects on affected exporters.

“Overall, while the new U.S. tariffs have generated understandable concern, their direct economic implications for Nigeria should not be overstated. The greater challenge lies in navigating an increasingly fragmented and protectionist global trading environment,” Yusuf said.