US Tariff to Value Nigerian Exporters $814.8m
Nigeria faces a multimillion-dollar hike in export tariffs to the U.S. In 2023, Nigeria’s complete commerce exports to the U.S. had been valued at $5.82 billion.
With the 14 % tariff launched in 2025, the nation might have confronted an extra $814.8 million in prices.
If export values stay the identical, this would be the influence. Nonetheless, fluctuations in exports will change the price proportionally, primarily based on the 14 % price. Which means if export values rise or fall, the extra price will modify accordingly.
Historical past exhibits that probably the most highly effective nations can face sudden challenges. Simply as Goliath met his match with David, might the USA, already in commerce disputes with over 25 nations, discover itself grappling with the fallout of imposing a 14 % tariff on Nigerian exports?
Paul Krugman, a Nobel laureate, has lengthy warned that commerce protectionism, whereas seemingly helpful, is a “seductive however harmful coverage.” It creates the phantasm of success, even because the broader financial system suffers.
This perception rings true because the U.S. imposes a tariff on Nigeria and others, elevating considerations concerning the financial fallout for each nations.
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Muda Yusuf, CEO of the Centre for the Promotion of Personal Enterprise (CPPE), means that Nigeria and Africa might not must be overly involved concerning the U.S. tariff imposition.
He factors out that the majority of Nigeria’s commerce is with Asian nations and Europe, with comparatively restricted commerce quantity with the U.S. Yusuf believes that since Nigeria and most African nations usually are not main buying and selling companions of the U.S., the influence of the tariffs could also be minimal.
Bismarck Rewane, CEO of Monetary Derivatives Firm (FDC), described the tariff as “extraordinarily harmful” in an interview with Come up Information.
His view echoes the knowledge of classical economist David Ricardo, who believed that commerce permits nations to share sources, improvements, and efficiencies.
Ngozi Okonjo-Iweala, Director-Normal of the World Commerce Organisation (WTO), has emphasised the extreme repercussions of escalating commerce tensions. She cautioned that retaliatory commerce wars, harking back to these within the Thirties, might result in substantial world GDP losses, urging nations to hunt decision via established WTO mechanisms quite than partaking in tit-for-tat measures.
By imposing this tariff, the U.S. dangers limiting the financial advantages derived from its commerce with Nigeria, notably in sectors the place American industries depend on Nigerian exports.
SOURCE: BusinessDay
