Nigeria’s Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, has addressed the potential impact of the United States’ tariffs on the Nigerian economy.
Oduwole, in an exclusive interview with ARISE NEWS, emphasised that the US remains a key trading partner for Nigeria, especially under the African Growth and Opportunity Act (AGOA), which has been beneficial for Nigerian oil exports. However, she acknowledged the challenges that certain sectors, such as fertilizers, might face as a result of global trade disruptions.
“We have to also think about our second largest fertilizers URA lead, those are businesses that have been growing in market share. This gives them uncertainty, this gives them disruption to their operations, so we are working with those types of businesses.”
She highlighted that while Nigeria’s exports to the US are significant, small and medium-sized enterprises (MSMEs), which are not covered by AGOA, could face disruptions. With MSMEs accounting for nearly 50% of Nigeria’s GDP, the government is actively working on initiatives to help these businesses diversify their export markets, targeting over 250 countries.
She also pointed out the importance of the African Continental Free Trade Area (AfCFTA), which presents a promising opportunity to expand Nigeria’s exports across the continent.
The Minister stated that the Nigerian government has been prioritising trade diversification, with a focus on empowering women-led and youth-led businesses. “So we have looked at that demographic and we identified the AFCA because it speaks to the women led businesses, youth led businesses, it speaks to informal sector formalising it, it speaks to MSMEs and how they can attract foreign exchange by exporting across the continent.
In addressing concerns about global trade tensions, Oduwole emphasised the need for a strategic approach. Nigeria, she explained, is insulated from the full effects of global trade disruptions, as Africa accounts for only 3-5% of global trade. “Africa is kind of insulated from the global trade because we are less than 5% like about 3% of global trade so the players that really dominate we don’t want that retaliation and then we have end up being collateral damage or the unintended consequences so that really what the issue is and that’s what’s making headline news.”
However, the potential for collateral damage due to global retaliation is a significant concern.
Despite these challenges, Oduwole assured that the Nigerian government has a robust strategy in place. This includes initiatives such as facilitating digital trade, investing in free zones, and pursuing tax reforms to support MSMEs and attract foreign investment. In addition, the government is actively engaging in diplomatic efforts, with meetings held with representatives from the UK, US, China, Brazil, Japan, and the UAE, to strengthen Nigeria’s trade relationships globally.
Oduwole also asserted that Nigeria’s approach is one of proactive response rather than reaction. Under President Tinubu’s leadership, the government is focusing on strengthening its trade policy and investment strategy to ensure long-term economic stability.
This comprehensive strategy aims to position Nigeria to navigate global trade disruptions with confidence. “It’s time to really put your trade policy and your investment policy and your investment attraction strategy to play, it puts you in a position where you can respond with confidence to situations like this.”
Erizia Rubyjeana
Follow us on:
