Trump’s 14% tariff threatens N9.59trn US-Nigeria bilateral trade – MAN

The Manufacturers Association of Nigeria (MAN) has said the United States President Donald Trump’s imposition of 14 per cent tariff on imported products directly threatens NN9.59 trillion bilateral trade between the US and Nigeria. The Director-General, MAN, Mr Segun Ajayi-Kadir, in a statement on Tuesday in Lagos, noted that the U.S. remained one of Nigeria’s […]

The Manufacturers Association of Nigeria (MAN) has said the United States President Donald Trump’s imposition of 14 per cent tariff on imported products

directly threatens NN9.59 trillion bilateral trade between the US and Nigeria.

The Director-General, MAN, Mr Segun Ajayi-Kadir, in a statement on Tuesday in Lagos, noted that the U.S. remained one of Nigeria’s most significant trade partners, accounting for approximately 7 per cent of its non-oil exports.

Ajayi-Kadir said the new tariff regime directly threatened this trade dynamic, particularly as Nigeria projected an ambitious N55 trillion budget and was experiencing a downward trend in global crude oil prices.

• Deontay Amate clinches 2025 IBB Captain’s Cup in thrilling finale
• Ganduje: NNPP dead, Kwankwaso will soon join APC

According to him, the hike has come at a vulnerable moment when the country is just recovering from the impact of the government’s policy mix that has had negative effects on the manufacturing sector.

He said “Undoubtedly, the United States remains one of Nigeria’s most significant trade partners, accounting for approximately 7 percent of its non-oil exports.

“ In 2024, bilateral trade between Nigeria and the US stood at N9.59 trillion, representing 6.9 percent of Nigeria’s total trade volume. Of this, Nigerian exports to the U.S. amounted to N5.52 trillion, while imports from the U.S. stood at N4.07 trillion.

“The new tariff regime directly threatens this trade dynamic, particularly in a year when Nigeria is projecting an ambitious N55 trillion budget and facing the downward trend in global crude oil prices, which have already fallen below the government’s benchmark of $75 per barrel.

“The tariff hike, therefore, comes at a vulnerable moment when the country is just recovering from the impact of the government policy mix that has had negative effects on the manufacturing sector.”

Ajayi-Kadir stated that in addition to revenue losses, the new tariffs posed a significant disincentive to firms investing in value-added manufacturing.

He noted that over the past decade, manufacturers had made concerted and strategic efforts to support the country’s transition from exporting raw commodities to semi-processed and finished goods.

“However, higher market-entry costs because of higher tariff on Nigerian products will reduce the profitability of such investments, making it more attractive for firms to revert to exporting raw materials.

“This is counterproductive to Nigeria’s industrialisation agenda and compromises the long-term goal of achieving export diversification under platforms such as the African Continental Free Trade Agreement (AfCFTA),” he said.

The MAN DG added that the implications of the tariff imposition on employment in the manufacturing sector were dire.

He noted that as export revenues fall, many companies may reduce their production scale or downsize their workforce to cut costs.

He added that beyond the manufacturing sector, the Nigerian economy was not insulated from the effects of the U.S. tariff decision with its direct impact on Nigeria’s trade balance.

Ajayi-Kadir said with the country already grappling with a fragile external sector, any significant reduction in exports to the U.S. would erode the current trade surplus, potentially pushing the balance into deficit.

He expressed worry about potential pressure on Nigeria to reciprocate by reducing its own tariffs on U.S. goods.

He noted that while the U.S. may frame this as a step toward “fair trade,” the reality was that lowering tariffs on U.S. imports could flood the Nigerian market with subsidised goods, thereby undermining local producers.

“Nigeria has, in recent years, made commendable strides toward achieving self-sufficiency in several manufacturing segments and diversifying away from oil.

“However, succumbing to external pressures to liberalise trade prematurely would reverse these gains.

“Furthermore, the absence of institutional capacity to engage in sophisticated trade negotiations places Nigeria in a vulnerable position.

“While countries with advanced legal and economic institutions may be able to negotiate favourable terms, Nigeria is at a disadvantage due to capacity constraints,” he said.