Turning Trade Tensions into Opportunity: How Nigeria Can Leverage Global Shifts for Economic Growth
With the ongoing trade rift between the US and several countries—including Nigeria—the Chartered Institute of Directors (CIoD) believes there’s a silver lining for Nigeria’s economy. While the 14% US tariff on Nigerian exports and Nigeria’s 27% tariff on US goods might seem like setbacks, the CIoD argues they also present real opportunities. The institute is calling on the government and private sector to reposition and tap into new global trade routes, as companies globally are now reconsidering their supply chains and looking for fresh markets.
Of course, the downside is real. These tariffs are expected to drive up import costs, put pressure on the naira, and disrupt existing supply chains. Small and medium-sized businesses—already vulnerable—could take a serious hit, leading to job losses and shrinking consumer power. With Nigeria relying heavily on imported goods across various sectors, the ripple effects could cause widespread price hikes and inflation, especially if global suppliers adjust pricing to cover losses in affected markets.
Even with these challenges, CIoD believes there’s room for optimism. As global trade partners like China seek alternative destinations, Nigeria could become a hub for new investments and manufacturing. The institute highlights opportunities like tech transfer, job creation, and local production growth—especially for businesses ready to form smart international partnerships. Plus, this trade shake-up could speed up regional trade under the African Continental Free Trade Area (AfCFTA), offering Nigerian companies a bigger African market to explore.
To make the most of the situation, CIoD advises companies to be proactive—invest in market research, rethink supply chains, and build stronger alliances within industries. Businesses that can pivot quickly and embrace the evolving trade landscape will be best placed to ride out the storm. Government policy will also play a crucial role in supporting local industries and helping businesses stay competitive in this volatile climate.
Source: The sun