US tarrif on goods presents export challenges for Nigeria -Minister of of Industry, Trade, and Investment Jumoke Oduwole

Nigeria’s non-oil exports to the United States are facing new turbulence as the U.S. government imposes a sweeping 14% tariff, threatening market access and competitiveness for local businesses operating under the African Growth and Opportunity Act (AGOA).

The tariff, part of a broader trade action announced by President Donald Trump on April 2, targets all U.S. imports, including goods from Nigeria. Though Nigeria’s oil exports remain largely unaffected, the new tariffs hit value-added and non-oil products that have gained traction in recent years under AGOA exemptions.

Speaking on the development, Minister of Industry, Trade, and Investment Jumoke Oduwole warned that the move could disrupt Nigeria’s export diversification strategy and put pressure on small and medium-sized enterprises (SMEs) that rely on access to the U.S. market.

“These measures present destabilising challenges to price competitiveness and market access,” Oduwole said in a statement released Monday. “Sectors that are emerging and value-added—vital to our economic diversification agenda—may experience disruption.”

She noted that new tariffs, including a 10% duty on key categories, risk pushing Nigerian goods out of contention in the highly competitive U.S. market.

Despite the setback, the Nigerian government reaffirmed its commitment to economic resilience under the leadership of President Bola Ahmed Tinubu, citing the administration’s Renewed Hope Agenda.

Oduwole emphasized that Nigeria remains in close dialogue with both the U.S. government and the World Trade Organization (WTO), seeking constructive, mutually beneficial outcomes.

“The U.S. remains a valued trade and investment partner. We’re responding to these evolving dynamics with pragmatism,” she added.

Nigeria’s exports to the U.S. have averaged $5–6 billion annually over the last two years, with more than 90% derived from crude petroleum, mineral fuels, and gas products. Non-oil exports—including fertilizers, urea, lead, and agricultural products like nuts and flour—make up a small but growing slice of the pie.

The ministry expressed concern that SMEs, many of which built their business models around AGOA’s duty-free access, may now face rising costs and erratic buyer behaviour.

In response, the government is expanding alternative markets, boosting export-quality standards, and enhancing trade risk mitigation strategies. One key focus is strengthening Nigeria’s role within the African Continental Free Trade Area (AfCFTA).

“This moment underscores the urgency of deepening intra-African trade,” the ministry said. “We must accelerate AfCFTA implementation, enhance regional integration, and leverage tools like the Pan-African Payment and Settlement System to reduce trade costs and drive intra-African commerce.”

Oduwole struck an optimistic tone despite the challenges, framing the tariffs as a wake-up call for Nigeria to double down on export diversification and industrial capacity.