Nigeria Needs 40% Annual Growth to Offset U.S. Tariff Impact, Economist Warns
In a recent address at the 2025 Vanguard Economic Discourse in Lagos, Dr. Yemi Kale, the Group Chief Economist at Afreximbank, highlighted the significant challenges Nigeria faces in achieving its ambitious goal of a one trillion-dollar economy. Kale warned that in light of the U.S. tariff hike, the country would need to achieve an unprecedented annual growth rate of 40% to offset the economic impact. He described this target as virtually unachievable under current conditions, stressing the necessity for reforms to protect Nigerian exports from global trade disruptions.
Kale proposed a clear roadmap for Nigeria’s economic recovery and growth, urging the government to leverage the country’s strengths, such as its youthful population and vast natural resources. He outlined a strategy to navigate shifting global trade policies and reaffirmed the importance of stabilizing the macro-economy, restoring fiscal and monetary credibility, curbing inflation, and rebuilding investor confidence. The economist emphasized that these foundational pillars would be essential for achieving sustainable economic resilience.
The need to diversify Nigeria’s economy was another key point Kale raised. He advocated for greater investment in sectors such as agriculture, manufacturing, services, and the digital economy, noting that unlocking the full potential of these sectors would be vital for long-term prosperity. Kale further emphasized the importance of investing in human capital and strengthening governance systems, which he believes are crucial for sustainable economic growth.
Despite the challenges posed by the U.S. tariff hike and shifting global dynamics, Kale expressed cautious optimism about Nigeria’s future. He highlighted the importance of implementing thoughtful policies that balance risks and opportunities. Additionally, Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), reinforced the message, calling for Nigeria to prioritize economic sovereignty and develop a resilient, homegrown democracy to secure its economic future.
Source: Naira metrics