The global trade landscape has been disrupted by escalating tariffs, with the United States at the center of the conflict. President Donald Trump’s aggressive trade policies have prompted retaliatory measures from China and the European Union. These moves are impacting markets worldwide, including Nigeria’s.
Challenges for Nigerian Manufacturers
Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria (MAN), discussed the issue on Channels Television’s The Morning Brief. He explained how rising tariffs could harm Nigeria’s access to the U.S. market, particularly under the African Growth and Opportunity Act (AGOA). AGOA allows duty-free access to the U.S. for eligible goods from sub-Saharan African countries.
The U.S. recently imposed a 14% tariff on Nigerian exports. They later reduced it to 10% during a 90-day pause. Ajayi-Kadir expressed concern. He said that these measures could undermine Nigeria’s growing exports to the U.S. “The tariff war is a strategy to boost U.S. manufacturing. For Nigeria, which is just starting to gain access to the U.S. market, this is a major challenge.”
Impact on Nigeria’s Trade with the U.S.
Ajayi-Kadir noted that AGOA will end in September 2025. Nigeria, he explained, has not made significant progress in exporting to the U.S. compared to countries like South Africa and Kenya. “This setback could slow Nigeria’s growth in U.S. exports,” he said. “Even with the 10% tariff, it remains a significant obstacle, especially since we were running a positive trade balance with the U.S. just months ago.”
He also pointed out the uncertainty of global trade policies. “One tweet from the U.S. president can reverse an agreement like AGOA,” he said. This volatility, he argued, makes it even more crucial for Nigeria to develop strategies to mitigate the impact.
Building Resilience Amid Global Trade Uncertainty
Ajayi-Kadir emphasized the importance of a strong domestic economy to weather global trade disruptions. He called for competitive regulations and policies that support local manufacturers. “Our domestic environment must be conducive to growth,” he said. “If we don’t address inefficiencies at home, we risk being overwhelmed by external pressures.”
He also addressed Nigeria’s regulatory bodies. “The Nigerian Ports Authority and Customs must reconsider proposed increases in port fees and duties. These measures could further strain the manufacturing sector, especially during uncertain times,” he added.
The Role of African Trade: AfCFTA as a Strategic Opportunity
Ajayi-Kadir pointed to Africa’s growing importance in Nigeria’s trade strategy. Last year, Nigeria’s trade with African countries surpassed trade with both the U.S. and China. “Nigeria’s trade with Africa reached N8.7 trillion. That’s more than trade with the U.S. at N5.5 trillion and China at N3 trillion,” he noted.
He stressed that AfCFTA (African Continental Free Trade Area) could be key to Nigeria’s trade future. “AfCFTA provides a valuable opportunity to increase intra-Africa trade. Nigeria is already on the right track,” he said.
AfCFTA: A Key to Nigeria’s Long-Term Trade Success
Ajayi-Kadir highlighted that AfCFTA could help Nigeria navigate the challenges posed by global trade tensions. “Focusing on regional trade will make Nigeria more resilient to global disruptions,” he said. However, he cautioned against over-reliance on any single market, including the U.S. “The world doesn’t only need America, America needs the world. Trump may be overestimating his influence, as the global order is shifting,” he argued.
In conclusion, Ajayi-Kadir urged Nigeria to focus on long-term strategies to strengthen its manufacturing sector. “We need to create a competitive environment at home. That will allow us to weather global trade disruptions and maintain our position in the international market.”
