The administration of President Bola Tinubu is contemplating a revision of its economic framework in response to the recent 14% tariff imposed by the United States on Nigerian exports.
Naturenex reports that this tariff—introduced as part of an escalating trade standoff between Nigeria and the U.S.—could significantly affect Nigeria’s $6 billion annual export volume to the U.S., worsening current economic issues such as rising inflation and currency depreciation.
Nigeria’s Finance Minister and Coordinating Minister of the Economy, Wale Edun, expressed serious concerns over the new U.S. policy, emphasizing its potential to disrupt the nation’s economic projections.
Speaking at the inaugural Corporate Governance Forum in Abuja, Edun stated that the country’s economic leadership—comprising key players from the public and private sectors—would continue to assess the situation and provide the government with appropriate policy responses.
“We are tasked with evaluating all scenarios and offering well-informed advice to guide government decisions,” Edun remarked.
He also hinted that key parameters of the 2025 budget, including projected revenues and oil price benchmarks, may be reassessed to reflect shifting global trade dynamics.
The U.S. tariff, introduced by President Donald Trump, is reportedly a countermeasure to Nigeria’s 27% duty on American goods. However, Nigerian oil and mineral exports are exempt from this latest U.S. trade sanction.
Despite the tariff, Nigeria has maintained a trade surplus with the United States in recent years, largely due to the dominance of oil and mineral products in its export portfolio.
“While the tariff may affect overall exports, our continued performance in oil and mineral exports should minimize its impact,” Edun explained.
Nonetheless, he warned that fluctuating oil prices remain a major concern, potentially putting additional pressure on the already fragile economy. To counter this, the government is increasing crude oil production and expanding revenue sources through the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service.
In response to the global trade tension, Edun suggested that the government may undertake a comprehensive realignment of its economic strategies, including a possible reworking of the 2025 national budget.
One of the key areas of focus is the reform of State-Owned Enterprises (SOEs), which are central to Nigeria’s energy, telecommunications, infrastructure, and financial sectors. Persistent inefficiencies and governance challenges have limited the effectiveness of these institutions.
To address these issues, the Ministry of Finance Incorporated (MOFI) has introduced a corporate governance scorecard to improve accountability, efficiency, and transparency in SOE operations.
“Lack of proper governance in SOEs has historically led to revenue losses and weakened investor confidence. Our reform agenda aims to reposition these enterprises for long-term value creation,” Edun said.
He commended MOFI’s initiatives and emphasized the need for deeper reforms, including strengthening regulatory frameworks, institutionalizing the governance scorecard, and encouraging public-private partnerships (PPPs) to foster economic resilience.
“State-owned enterprises must implement strong governance systems to achieve financial sustainability and operational efficiency,” he concluded, underlining the need for Nigeria to strengthen its economic institutions in the face of shifting international trade policies.
