 has said Nigeria is unlikely to suffer significant economic setbacks.){kind=link}
U.S. 12.5% Tariff on Nigeria Exports Unlikely to Hurt – CPPE
The Centre for the Promotion of Private Enterprise (CPPE) has said Nigeria is unlikely to suffer significant economic setbacks from the United States’ decision to impose a 12.5 per cent tariff on imports from the country.
Chief Executive Officer Dr. Muda Yusuf explained that Nigeria’s export structure substantially shields it from the full impact of the new measures.
“Nigeria’s exports to the United States are overwhelmingly dominated by crude oil, liquefied natural gas (LNG) and other petroleum products, which account for more than 80 per cent of our merchandise exports to the U.S. These products have been exempted from the new tariff measures, leaving the bulk of Nigeria’s exports unaffected,” he said.
Yusuf noted that the U.S. is not Nigeria’s largest export destination. Citing Q1 2026 trade statistics, he said, “Total exports stood at approximately ₦21.6 trillion during the period, with exports to the United States accounting for only 5.56 per cent. India ranked as Nigeria’s largest export destination with 13.09 per cent, followed by France, the Netherlands and Spain. The United States ranked fifth.”
While acknowledging that some non-oil exporters, particularly in agriculture and manufacturing, could face reduced competitiveness in the American market, Yusuf maintained that the overall impact on Nigeria’s export earnings and foreign exchange receipts would be modest.
“It is essentially a question of materiality. The products affected account for only a small share of Nigeria’s total exports,” he explained.
He added that the tariff reflects a broader structural shift in global trade policy, reinforcing trends toward protectionism and industrial policy.
“The underlying policy objective remains essentially the same: to protect U.S. domestic industries, strengthen American manufacturing competitiveness and advance broader U.S. trade and economic interests,” Yusuf said.
Against this backdrop, he urged Nigeria to intensify efforts towards export diversification, enhance manufacturing competitiveness, increase domestic value addition, and maximise opportunities under the African Continental Free Trade Area (AfCFTA).
He also called on the Federal Government to sustain reforms aimed at strengthening labour standards, improving supply chain transparency, and engaging proactively with the United States to minimise adverse consequences for affected exporters.
“While the new U.S. tariffs have generated understandable concern, their direct economic implications for Nigeria should not be overstated. Our greater challenge lies not in the immediate loss of export opportunities, but in navigating an increasingly fragmented and protectionist global trading environment,” Yusuf concluded.