The Organised Private Sector (OPS) has expressed growing concern over the United States’ decision to impose a 12.5 per cent tariff on selected Nigerian exports, warning that the policy could place additional pressure on non-oil exporters and small businesses. While key raw materials remain exempt, industry leaders believe the new tariff could reduce the competitiveness of Nigerian products in the American market and have called on the Federal Government to respond quickly through diplomatic engagement and regulatory reforms.
The tariff, announced by the U.S. on July 23, forms part of a broader trade policy targeting countries that have not sufficiently prohibited the importation of goods linked to forced labour. Nigeria is among 60 affected economies, while countries such as India, Indonesia, Malaysia, Mexico, and the United Kingdom secured a lower 10 per cent tariff after introducing or committing to stronger measures against forced labour. Business leaders say Nigeria now has an opportunity to address the concerns and work toward securing a review of the policy.
President of the Nigerian-American Chamber of Commerce, Sheriff Balogun, described the development as a challenge rather than a confrontation, stressing that Nigeria shares the global commitment to eliminating forced labour from supply chains. He admitted that exporters of cocoa products, cashew, sesame, leather, and light manufactured goods would feel the impact, particularly small and medium-sized enterprises that operate on slim profit margins. However, he expressed confidence that the exemptions for major raw materials and continued demand for Nigerian products in the U.S. market would help cushion the effects while discussions continue.
Echoing similar concerns, the Lagos Chamber of Commerce and Industry (LCCI) warned that the additional tariff would increase the landed cost of Nigerian goods, making them less attractive to American buyers. The chamber noted that exporters heavily dependent on the U.S. market, alongside sectors such as manufacturing, agriculture, logistics, and processing, could experience indirect setbacks. Industry stakeholders also called for an immediate assessment of Nigeria’s exposure, stronger enforcement against forced labour practices, greater collaboration with the private sector, and accelerated efforts to diversify export destinations.
Despite the concerns, some experts urged against overstating the immediate economic impact of the policy. The Centre for the Promotion of Private Enterprise (CPPE) noted that the affected exports account for only a small share of Nigeria’s overall trade with the United States, as crude oil and other exempt products remain the country’s dominant exports. Nevertheless, economists believe the development serves as a wake-up call for Nigeria to strengthen labour standards, improve supply chain transparency, expand manufacturing, and reduce reliance on a limited number of export markets. For many industry players, the priority now is swift government action to protect exporters while positioning Nigeria for stronger global trade competitiveness.
source: punch
