Nigeria’s organised private sector has expressed concern over the United States’ decision to impose a 12.5 percent tariff on certain Nigerian exports, warning that the measure could affect the competitiveness of local businesses despite exemptions granted to some key raw materials.
The new tariff, announced by the US on July 23, targets imports from 60 countries, including Nigeria, over concerns that they have not taken sufficient measures to prevent the importation of goods produced through forced labour.Although major raw materials are exempted, exporters of agricultural products, manufactured goods and other non-oil products are expected to bear the impact of the additional duty.
Reacting to the development, President of the Nigerian-American Chamber of Commerce, Sheriff Balogun, said the Chamber supports global efforts to eliminate forced labour but believes dialogue with the United States remains the best approach to resolving the issue.
According to him, the policy should not be viewed as a hostile action but as an opportunity for Nigeria to improve its supply chain documentation and demonstrate its commitment to ethical trade practices.
Balogun acknowledged that some Nigerian exporters, particularly small and medium-sized enterprises dealing in cocoa products, cashew, sesame, leather and light manufactured goods, would face increased costs that could reduce their competitiveness in the US market.
However, he expressed optimism that the tariff could be reviewed if Nigeria strengthens its compliance with international labour standards, noting that countries with stronger anti-forced labour measures currently enjoy lower tariff rates. He added that the Chamber would continue working with the Federal Government, American business partners and Nigerian exporters to improve certification processes and strengthen supply chain transparency.
The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, also warned that the tariff would increase the landed cost of Nigerian products in the United States, making them less competitive. She noted that exporters operating on thin profit margins and businesses heavily dependent on the American market would be most affected, while sectors such as logistics, agriculture, manufacturing and export support services could also experience indirect consequences.
Almona called for an urgent product- and sector-specific assessment to determine the full impact of the policy on Nigeria’s exports, employment and foreign exchange earnings. She urged the Federal Government to immediately engage the Office of the United States Trade Representative, strengthen enforcement against forced labour practices, review Nigeria’s trade regulations, consult the private sector and intensify efforts to diversify export markets.
Similarly, Chief Executive Officer of Widescope Group and member of the Nigerian-American Chamber of Commerce, Dr. Segun Musa, said the additional tariff would raise the cost of Nigerian exports and weaken their competitiveness in the US market. While acknowledging every country’s right to review its trade policies, Musa warned that the decision could negatively affect Nigeria’s export projections, reduce investment opportunities, lower foreign exchange earnings and impact job creation.
He recommended stronger diplomatic engagement with the United States, greater support for exporters, expansion into alternative export markets and a review of tariffs on selected American imports where Nigeria has a competitive advantage. Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, advised the Federal Government not to overstate the immediate economic impact of the tariff.
According to him, although some agricultural and manufacturing exporters may experience reduced competitiveness, the overall effect on Nigeria’s economy is expected to be modest because the country’s major exports to the United States are not covered by the new tariff.
Yusuf, however, described the development as another indication of rising protectionism in global trade and called for sustained efforts to diversify Nigeria’s export base, strengthen manufacturing, improve labour standards and enhance supply chain transparency while maintaining diplomatic engagement with the United States.
