The Manufacturers Association of Nigeria (MAN) has voiced serious apprehension over the potential negative consequences of new U.S. tariff policies on Nigerian exports. As global economic dynamics shift, Nigeria finds itself at the crossroads of maintaining robust international trade relations while defending its domestic manufacturing interests.
According to MAN, the imposition of U.S. tariffs on selected Nigerian goods could significantly weaken the competitiveness of local manufacturers in international markets—especially at a time when Nigeria is pushing to diversify its economy and increase non-oil exports.
What Sparked the Concern?
In recent weeks, the U.S. Trade Representative’s Office revealed plans to revise tariff frameworks with various trade partners, citing concerns over market access, supply chain resilience, and national security. Although no detailed list of targeted countries was immediately released, Nigerian products like cocoa, textiles, rubber, and certain agricultural commodities are reportedly under review.
MAN Director-General Segun Ajayi-Kadir, in a public statement on Wednesday, warned:
“These tariffs, if applied to Nigeria’s exports, will not only hurt our manufacturing sector but also strain the decades-long trade partnership between both countries. We urge diplomatic channels to immediately address this looming trade challenge.”
Nigeria’s Trade Relationship with the U.S.
The United States remains one of Nigeria’s largest non-oil trading partners, with bilateral trade valued at over $8.1 billion in 2023, according to the U.S. Census Bureau. While oil has historically dominated exports, Nigeria has made strides in expanding non-oil exports through the African Growth and Opportunity Act (AGOA) framework.
The AGOA, which offers duty-free access to U.S. markets for eligible sub-Saharan African countries, has played a crucial role in supporting sectors such as textiles, leather, and agricultural produce. However, experts fear the current tariff discourse may weaken AGOA benefits and place Nigerian manufacturers at a disadvantage compared to peers in other regions.
Potential Impact on the Nigerian Economy
The Manufacturers Association estimates that any unfavorable tariff measures could lead to:
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Export revenue losses, particularly in agro-processing and light manufacturing.
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Lower investor confidence, due to uncertainty in international trade conditions.
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Job losses in manufacturing hubs that are export-reliant.
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Strain on the naira, as decreased foreign exchange earnings could widen Nigeria’s trade deficit.
A Call for Diplomacy and Trade Diversification
Experts are urging the Federal Government to take proactive diplomatic steps through the Federal Ministry of Industry, Trade and Investment, and Nigeria’s Foreign Affairs Ministry, to engage U.S. officials and protect Nigeria’s economic interests.
Trade expert and former NEPC Executive Director Segun Awolowo noted:
“Nigeria must leverage its influence within the AGOA framework and the WTO to ensure fair treatment. At the same time, we should aggressively expand trade ties with emerging markets in Asia and South America to reduce over-dependence on Western economies.”
What Can Nigeria Do?
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Strengthen Local Value Chains: By increasing local input in export products, Nigeria can enhance the value and resilience of its goods.
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Negotiate Bilateral Trade Agreements: Beyond multilateral platforms, Nigeria should explore tailored trade deals that protect strategic sectors.
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Invest in Quality Assurance and Branding: To stay competitive globally, Nigerian goods must meet international standards and improve branding visibility.
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Leverage Continental Free Trade: The African Continental Free Trade Area (AfCFTA) offers untapped opportunities to redirect exports within Africa.
Conclusion
The concerns raised by the Manufacturers Association of Nigeria are not just a trade issue—they’re a national economic concern. As Nigeria works toward revitalizing its manufacturing sector and reducing oil dependence, preserving favourable trade conditions with global partners like the U.S. is critical.
In a globalized economy, every tariff decision made thousands of miles away can have rippling effects at home. For Nigeria, the path forward lies in strategic diplomacy, economic diversification, and the consistent upgrading of its export capacities.
References:
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U.S. Census Bureau – Nigeria-U.S. Trade Data (2023)
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Manufacturers Association of Nigeria (MAN) – Public Statement, April 2025
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African Growth and Opportunity Act (AGOA) – agoa.info
Last Updated on April 17, 2025 by kingstar
