Nigeria risks trade restrictions, higher tariffs on U.S. exports – PwC

A Strategy & the strategy consulting arm of PricewaterhouseCoopers (PwC) has warned that Nigeria may face heightened trade barriers and increased tariffs on exports to the United States. In its report, titled ‘Global Economic Policy Changes and Implications for Nigeria’, PwC highlighted looming economic challenges for the country as potential changes to President Donald Trump’s U.S. […]

A Strategy & the strategy consulting arm of PricewaterhouseCoopers (PwC) has warned that Nigeria may face heightened trade barriers and increased tariffs on exports to the United States.

In its report, titled ‘Global Economic Policy Changes and Implications for Nigeria’, PwC highlighted looming economic challenges for the country as potential changes to President Donald Trump’s U.S. trade policies could disrupt access to crucial markets.

The report emphasised that Nigeria’s economic vulnerability is tied to the future of the African Growth and Opportunity Act (AGOA), a U.S. trade programme that facilitates duty-free access to American markets for goods originating from eligible sub-Saharan African nations.

If AGOA benefits are not renewed, Nigeria may lose key trade privileges, severely impacting its exports of crude oil, agricultural products, and manufactured goods.

Nigeria has historically been a major beneficiary of AGOA, exporting $1.76 billion worth of goods to the United States in 2024, making it the second-largest AGOA exporter after South Africa.

The removal of AGOA benefits could drastically reduce Nigeria’s competitiveness in the U.S. market, leading to a decline in export volumes and foreign exchange earnings.

The report warned of potential U.S. crude oil import bans or sanctions, which could further isolate Nigerian exports from American markets.

Compounding these risks are global supply chain disruptions fueled by U.S. tariff policies, which could increase the cost of importing fuel, machinery, and essential goods into Nigeria, potentially triggering hyperinflation.

Additionally, large-scale deportations of Nigerian workers from the U.S. could significantly reduce remittance inflows, a vital component of Nigeria’s foreign exchange reserves.

The report also highlighted the devastating impact of a suspension of U.S. aid, which would negatively affect critical sectors such as healthcare, education and infrastructure.

On the oil front, the report pointed to a surge in U.S. domestic oil production that may lead to a global oversupply, driving oil prices below Nigeria’s budget benchmark.