Nigeria’s import restrictions on 25 product categories have led to concerns from U.S. exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods. The United States Trade Representative (USTR) expressed its dissatisfaction on Monday, stating that Nigeria’s bans on goods such as beef, pork, poultry, fruit juices, medicaments, and spirits are limiting U.S. market access and reducing export opportunities. These restrictions create significant trade barriers and have resulted in lost revenue for U.S. businesses seeking to expand in the Nigerian market.
This issue comes amid rising tensions over the global trade landscape, with the U.S. administration recently imposing various tariffs on multiple countries, including Nigeria. Last week, U.S. President Donald Trump announced tariffs ranging from 10% to 65% on imports from several nations, including a 14% tariff on Nigerian exports. The tariff hike has further strained trade relations, impacting Nigerian stocks.
On Monday, the Nigerian stock market suffered a substantial drop, with investors losing approximately ₦659 billion. The Nigerian Exchange’s All Share Index (ASI) fell by 1.23%, marking its largest single-day decline of the month. Companies like Oando and Honeywell Flour Mills saw significant losses, contributing to the market downturn. Oando’s stock dropped from ₦42 to ₦37.80, while Honeywell’s fell from ₦11.32 to ₦10.19.
The market’s capitalisation also decreased from ₦66.147 trillion to ₦65.488 trillion, and the Nigerian market’s return for the year has reduced to +1.25%. As Nigeria navigates these trade challenges, other countries, including China, have expressed their intent to retaliate against U.S. tariffs, escalating the global trade conflict.
In response to the tariff pressures, Nigeria’s Minister of Finance, Wale Edun, announced on Monday that the Federal Government would work on boosting non-revenue sources to mitigate the negative impact of the trade tariffs. Edun assured that the Economic Management Team (EMT) would meet to assess the full impact of the 14% tariff on Nigerian goods exported to the United States. Following the assessment, the EMT plans to make recommendations to cushion the economic effects, with a particular focus on increasing oil production and enhancing non-oil revenues to stabilize the economy amid these trade challenges.
