Export at Risk: U.S. Tariffs Push Nigeria Toward Urgent Economic Reform

The United States’ introduction of a 14% reciprocal tariff on Nigerian exports in April 2025 is beginning to reverberate across the nation’s economy. Triggered by Washington’s broader “Liberation Day Tariffs” initiative targeting trade imbalances, the new policy has made Nigerian goods—especially non-oil exports like agricultural products—less competitive in the U.S. market.

In 2024, Nigeria exported $1.76 billion worth of goods to the U.S., with crude oil making up nearly 89% under the African Growth and Opportunity Act (AGOA). While oil exports remain exempt for now, reduced U.S. demand and domestic U.S. energy production are squeezing Nigeria's oil revenue. More vulnerable are sectors like cocoa, rubber, textiles, and sesame seeds, where experts forecast potential annual losses of over ₦2 trillion due to falling export volumes.

The ripple effects are already evident: foreign exchange earnings are tightening, inflationary pressures are building, and import costs have risen due to naira depreciation and disrupted supply chains.

Analysts urge Nigeria to accelerate economic diversification, expand regional trade under the AfCFTA, and cultivate alternative export destinations. While the tariff poses immediate economic headwinds, it may also serve as a wake-up call, sparking much-needed reforms and investment in local industries.

Sources