The Sea Empowerment & Research Centre (SEREC) has warned that the United States’ decision to increase import tariffs on goods from Nigeria from 10 per cent to 12.5 per cent could deal a significant blow to the country’s export sector, foreign exchange earnings, and investor confidence. The policy shift, introduced under a new U.S. trade framework targeting countries accused of having inadequate safeguards against forced labour in supply chains, may create fresh economic challenges for Nigeria if urgent measures are not taken.
According to SEREC, although Nigeria was not specifically singled out, its inclusion among the 60 countries affected by the tariff increase could reduce the competitiveness of Nigerian products in the American market. The United States remains one of Nigeria’s major export destinations, importing billions of dollars’ worth of crude oil, liquefied natural gas, fertilisers, cocoa products, sesame seeds, solid minerals, and other agricultural and manufactured goods. With the higher tariff raising the cost of Nigerian products, American buyers may begin sourcing similar goods from countries enjoying lower import duties.
The research body explained that declining exports to the U.S. could trigger wider economic consequences beyond international trade. Lower export volumes would likely reduce dollar inflows into Nigeria, placing additional pressure on the naira and increasing exchange-rate volatility. Export-oriented manufacturers, agricultural producers, freight forwarders, logistics companies, and port operators could also experience declining business activities as export demand weakens. SEREC noted that Nigeria currently enjoys a trade surplus with the United States, with exports valued at approximately $5.3 billion compared to about $3.9 billion in imports, making the tariff increase a development that deserves close attention.
SEREC also expressed concerns that the new tariff could discourage foreign investment by creating uncertainty around Nigeria’s export competitiveness. While crude oil exports may be less affected because of separate energy trade arrangements, the country’s efforts to diversify into non-oil exports could face serious setbacks. Industries such as cocoa processing, sesame, cashew, leather products, processed foods, manufactured consumer goods, and selected mineral exports are expected to bear the greatest impact. The organisation stressed that Nigeria’s manufacturers are already battling high production costs, inflation, logistics bottlenecks, unstable exchange rates, and inadequate infrastructure, making the additional trade barrier even more challenging.
To cushion the impact, SEREC urged the Federal Government to immediately engage U.S. trade authorities to clarify the reasons behind Nigeria’s inclusion while strengthening labour compliance and supply-chain transparency to meet international standards. The group also called for accelerated export diversification under the African Continental Free Trade Area (AfCFTA), expansion of value-added manufacturing, improved port and transport infrastructure, and stronger support for exporters through financing and incentives. According to SEREC, the new U.S. tariff should not be viewed solely as a restriction but as a wake-up call for Nigeria to improve production standards, strengthen trade diplomacy, and build a more competitive export sector capable of accessing global markets despite evolving trade policies.
source: punch
