MAN Warns U.S. Tariff Could Derail Nigeria’s N55trn Budget, Threaten AfCFTA Ambitions
The Manufacturers’ Association of Nigeria (MAN) has raised the alarm over the imposition of a 14% tariff on Nigerian goods by the United States, warning that the development could significantly hinder the implementation of Nigeria’s ambitious N54.99 trillion budget for 2025. According to the association, the new trade barriers come at a critical time when Nigeria is planning record investments in key sectors like national security, where the government has allocated a historic N6.11 trillion. MAN believes that the tariffs could threaten these priorities and derail broader economic recovery efforts.
The association noted that the timing of the U.S. tariff hike is especially worrying, given the country’s economic fragility. With global crude oil prices dipping below the government’s benchmark of $75 per barrel, Nigeria’s primary revenue source is under pressure. MAN warned that the added burden of tariffs could compound the manufacturing sector’s ongoing struggles, which have been exacerbated by inconsistent government policies and external market shocks.
The new tariffs, MAN stressed, will diminish the competitiveness of Nigerian goods in the U.S. market, particularly affecting exporters in agro-processing, chemicals, pharmaceuticals, metals, and other industrial manufacturing segments. In 2024, the sector contributed 8.64% to the country’s GDP, and MAN fears a decline in output and revenue due to reduced market access. Key exports like cocoa derivatives, sesame seeds, and ginger are likely to face reduced demand and falling prices, jeopardizing hard-won gains in value-added export development.
Beyond immediate revenue concerns, MAN warned that the tariff could discourage ongoing efforts to shift from raw material exports to processed and manufactured goods. Rising entry costs in global markets may push manufacturers to abandon value addition in favor of raw exports, undermining Nigeria’s industrialisation agenda. Ultimately, the association cautioned that this trend could compromise Nigeria’s strategic vision under the African Continental Free Trade Agreement (AfCFTA) and stall momentum toward meaningful export diversification.
Source: Tribune