(3 Minutes Read)
The U.S. recently imposed tariffs on imports from countries without trade agreements, affecting developing nations, including Nigeria. However, Nigeria’s Finance Minister, Wale Edun, stated that the impact on Nigeria will be minimal, primarily due to its significant export of crude oil and mineral products to the U.S., which are exempt from these tariffs.
In 2024, oil and minerals constituted 92% of Nigeria’s U.S. exports, while non-oil sectors, such as agriculture and textiles, now face a 14% tariff. Despite the challenges for non-oil exporters, Edun reassured stakeholders that the overall effect is manageable as long as oil and mineral exports remain stable. He also highlighted the possibility for Nigeria to attract global manufacturers looking for alternatives to high-tariff countries like Vietnam, which faces a 46% tariff.
Edun indicated that Nigeria’s economic landscape is improving, with a GDP growth of 3.40% in 2024, driven by the services sector. Inflation has also begun to decline, providing relief to households. Additionally, Nigeria’s foreign exchange reserves have significantly increased, and public finances have stabilized due to reforms like the removal of fuel subsidies.
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The Finance Minister emphasised the need for better corporate governance in state-owned enterprises (SOEs), which he described as underperforming. Reforms are being implemented, including a new corporate governance scorecard in collaboration with the World Bank.
Edun’s remarks at the Corporate Governance Forum underscored the Nigerian government’s commitment to private sector-led growth and improving the investment climate, positioning Nigeria as an attractive alternative for businesses facing higher tariffs elsewhere.
