CPPE Warns New US Tariff Undermines Nigeria's Export Competitiveness
The Centre for the Promotion of Private Enterprise (CPPE) has issued a policy brief warning that the new United States tariff on Nigerian exports could significantly hamper the country's non-oil export growth. The brief, released on Wednesday, highlights that the tariff, which affects approximately 15% of Nigeria's non-oil exports to the US, may reduce export volumes and undermine the competitiveness of Nigerian goods in the American market.
Key Findings of the Policy Brief
According to the CPPE, the tariff imposes an additional cost burden on Nigerian exporters, making their products less attractive compared to competitors from other nations. The brief notes that sectors most affected include agriculture, textiles, and manufactured goods. "The new tariff could lead to a decline in export earnings and discourage potential investors in the non-oil sector," said Dr. Muda Yusuf, CEO of CPPE.
The policy brief also reveals that Nigeria's total exports to the US stood at about $4.5 billion in 2025, with non-oil products accounting for 12% of that figure. The tariff targets specific items such as cocoa, rubber, and leather products, which are critical for the country's diversification efforts.
Impact on Nigeria's Economy
The CPPE warns that the tariff could worsen Nigeria's trade balance and slow down the government's push to boost non-oil revenues. "If not addressed, this tariff could erode the gains made in recent years to expand non-oil exports," Yusuf added. The brief estimates that Nigeria could lose up to $200 million annually in export revenue if the tariff remains in place.
Moreover, the policy brief highlights the risk of job losses in sectors reliant on US exports. Small and medium enterprises (SMEs), which form the backbone of Nigeria's non-oil export sector, are particularly vulnerable. The CPPE calls for urgent diplomatic engagement with the US to seek a revision of the tariff.
Recommendations for Government Action
To mitigate the impact, the CPPE recommends that the Nigerian government initiate bilateral trade negotiations with the US, leveraging the African Growth and Opportunity Act (AGOA) framework. The brief also suggests improving export infrastructure and providing incentives for exporters to diversify into alternative markets. "We must not rely solely on the US market; expanding to Asia and other African regions is essential," Yusuf noted.
Furthermore, the CPPE advises the government to strengthen the capacity of Nigerian exporters to meet international standards and reduce production costs. The policy brief concludes with a call for a comprehensive review of Nigeria's trade policy to enhance resilience against such external shocks.
