Amid tariff war, NESG asks FG to rethink trade strategy

The Nigerian Economic Summit Group (NESG) has advised the federal government to restrategise on its tariff policies and renegotiate trade terms with strategic international partners, following the potential impact of a new wave of US protectionist policies modelled on US President Donald Trump’s trade stance. The recommendation is contained in a newly released report by […]

The Nigerian Economic Summit Group (NESG) has advised the federal government to restrategise on its tariff policies and renegotiate trade terms with strategic international partners, following the potential impact of a new wave of US protectionist policies modelled on US President Donald Trump’s trade stance.

The recommendation is contained in a newly released report by the NESG titled “Trump’s Policy Playbook 2.0: Strategic Implications of US Reciprocal Tariffs for the Nigerian Economy and Way Forward”.

It would be recalled that on April 2, 2025, President Trump followed through on his tariff threats by announcing a 10 per cent baseline tax on all imports into the United States, alongside higher tariff rates on countries running trade surpluses with the US.

Trump says tariffs will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of investment.

This is the second time NESG would be intervening in the Trump Tariff policy.

Earlier in February, the economic think-tank group had warned that Trump’s tax reforms may lead to a reduction in foreign direct investment (FDI) to Nigeria.

“Trump’s tax reforms may encourage US firms to repatriate investments, reducing FDI in Nigeria. To counter this, Nigeria should attract investors from China, the EU, and Gulf nations by improving its investment climate,” NESG had earlier said.

 

But in the latest report, NESG advised Nigerians to deepen diplomatic relations with major trading partners “to avoid losing larger markets for its products.”

 

“The government needs to revise its tariff regimes or negotiate new trade terms, seeking new bilateral trade relationships, which may unlock new opportunities for Nigerian investors. The country can adopt selective tariffs depending on the degree of sectoral vulnerability to external trade,” it said.

 

It also warned that a continuation or escalation of reciprocal tariffs by the United States could trigger a domino effect globally, disrupting the already fragile trade environment for developing countries like Nigeria.

 

 

 

Consequently, the NESG noted that Nigeria must take preemptive steps to protect key sectors of its economy and ensure access to critical export markets.