…recommends engagement with US authorities
The Centre for the Promotion of Private Enterprise (CPPE) has downplayed the impact of the United States’ decision to impose a 12.5 percent tariff on imports from Nigeria, arguing that the duty is unlikely to significantly affect the country’s export revenues, as most Nigerian exports to the US are exempt.
In a policy brief released on Sunday, Muda Yusuf, chief executive officer of the private sector think tank, said the tariff represents a continuation of the Trump administration’s reciprocal trade policy, despite being introduced under a different legal framework.
It follows the collapse of Donald Trump’s earlier Liberation Day tariff spread after it was struck down by the US Supreme Court. The latest action, implemented under Section 301 of the US Trade Act, has allegations related to forced labour as its legal basis.
“Although the legal foundation has changed, the underlying policy objective remains essentially the same: protecting US domestic industries, strengthening American manufacturing competitiveness and advancing broader US trade and economic interests,” the CPPE wrote.
The organisation, however, maintained that Nigeria’s exposure to the tariffs remains limited because crude oil, liquefied natural gas and other petroleum products which account for over 80 percent of Nigeria’s exports to the United States, have been excluded from the measures.
Meanwhile, the United States is no longer one of Nigeria’s dominant export destinations, Yusuf argued.
Presenting first-quarter 2026 foreign trade data, he noted that Nigeria exported about N21.6 trillion worth of goods globally, with exports to the United States accounting for only 5.56 percent of the total. India was Nigeria’s largest export market during the period with a 13.09 percent share, followed by France with 9.29 percent, the Netherlands with 9.22 percent and Spain covering 7.68 percent, placing the U.S. in fifth position.
While acknowledging that exporters of agricultural produce and manufactured goods could lose some competitiveness in the American market, CPPE said the impact on Nigeria’s export earnings, foreign exchange inflows and broader macroeconomic performance would likely be modest.
“This is essentially a question of materiality,” Yusuf said. “The products affected account for only a small proportion of Nigeria’s total exports, while the dominant export category to the US remains outside the scope of the tariffs.”
The think tank said the latest decision of the US nevertheless goes to show the trajectory of global trade toward protectionism and the use of tariffs as a tool to support domestic industries.
Yusuf urged Nigeria to hasten efforts to diversify exports, improve manufacturing competitiveness, deepen value addition and maximise opportunities under the African Continental Free Trade Area (AfCFTA).
“The greater challenge lies not in the immediate loss of export opportunities, but in navigating an increasingly fragmented and protectionist global trading environment,” Yusuf said.
CPPE also called on the government to strengthen labour standards, improve supply chain transparency and engage US authorities through diplomatic and trade channels to clarify how the new measures will be implemented and reduce potential disruptions for affected exporters.
