BRICS Tariff Threat: MAN Says US Action Could Spur Intra-African Trade, But Warns of Manufacturing Setback

The Manufacturers Association of Nigeria Export Promotion Group (MANEG) has weighed in on the United States’ proposed trade tariffs targeting countries aligned with BRICS, warning of potential disruption to Nigeria’s manufacturing and agricultural sectors. However, MANEG also sees the development as an opportunity for Nigeria to deepen intra-African trade by leveraging the African Continental Free Trade Area (AfCFTA).

Speaking to Vanguard, Dr. Benedict Obhiosa, Executive Secretary of MANEG, emphasized that while the tariffs could introduce economic headwinds, they may also push Nigeria to strengthen trade within the continent. Nigeria was formally admitted as the ninth BRICS partner nation in January 2025, making it a potential target of the 10% tariff hike proposed by former U.S. President Donald Trump, who cited “anti-American policies” of BRICS as justification.

Trade statistics from the National Bureau of Statistics (NBS) reveal that Nigeria’s trade volume with BRICS countries reached ₦5.41 trillion in Q1 2025, far outpacing the ₦1.54 trillion in exports to the United States. Obhiosa urged policymakers to use this moment to pivot toward new markets and build resilience by prioritizing value-added production in exports, which could create jobs and stimulate economic growth.

MANEG highlighted that seizing this opportunity through AfCFTA and enhanced regional partnerships would allow Nigeria to diversify its trade portfolio and reduce over-dependence on Western economies. This, according to Obhiosa, could lay the foundation for a more self-reliant, sustainable economic framework.

Nonetheless, MANEG cautioned that the implementation of such tariffs could result in reduced foreign investment, increased import costs, especially for vital goods like pharmaceuticals and agricultural inputs, and an uncertain business climate. The Executive Secretary warned that the higher cost of importing essential technology could slow industrial growth and negatively affect Nigeria’s economic trajectory if not properly mitigated.

Source: Vanguard