Monday, April 21, 2025 -The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has expressed deep concern over the recent tariff hikes introduced by U.S. President Donald Trump, stating that the move poses serious threats to Nigeria’s manufacturing sector and the country’s broader economic stability.
Ajayi-Kadir described the new tariffs as a strategic move
aimed at boosting American domestic manufacturing, but warned that such
policies create significant barriers for Nigerian exporters, particularly at a
time when the country is just beginning to expand its non-oil export footprint.
He said; “Trump is shaking the global trade table in line
with his ‘America First’ agenda. But for us, this comes at a time when we’re
only beginning to gain momentum in manufactured exports to the U.S., which is
part of our strategy to ease forex pressure.
He noted that the United States remains one of Nigeria’s
most important trade partners, accounting for nearly 7 percent of the country’s
non-oil exports. In 2024, trade between Nigeria and the U.S. was valued at
₦9.59 trillion, with Nigerian exports reaching ₦5.52 trillion. The imposition
of a 14 percent tariff now directly threatens this trade relationship,
particularly as Nigeria works with a ₦55 trillion budget and contends with
declining oil prices falling below the benchmark of $75 per barrel
Ajayi-Kadir emphasized that the new tariff regime would
seriously undermine the competitiveness of Nigerian goods in the U.S. market.
Exporters across key sectors—including agro-processing, pharmaceuticals,
chemicals, basic metals, and non-metallic products—depend heavily on American
demand. With the increased costs caused by tariffs, he said, “We expect demand
to drop significantly.”
He pointed out that processed agricultural products like
cocoa derivatives, sesame seeds, and ginger—commodities that had gained modest
but growing market share in the U.S.—would likely experience a sharp fall in
export volume. In 2024, agricultural exports generated over ₦4.42 trillion, and
the U.S. was one of the top destinations. According to Ajayi-Kadir, “This new
tariff could potentially wipe out ₦1 to ₦2 trillion of that figure annually.”
On the domestic front, Ajayi-Kadir warned that the ripple
effect of the policy could lead to job losses. “Companies may be forced to
scale down production or lay off staff to cut costs,” he said. “Contract
manufacturers, SMEs, and businesses in export-focused economic zones will be
hardest hit.” He added that local firms integrated into global supply chains
could also lose their competitive edge, especially as U.S. partners may seek
alternative sourcing options.
He further warned that the tariff policy could damage
investor confidence at a critical time when Nigeria is trying to position
itself as West Africa’s top manufacturing hub. In 2023, the manufacturing
sector attracted over $1.6 billion in capital imports. That figure, he
cautioned, could drop significantly in 2025 if the government doesn’t respond
with smart, supportive policies.
Ajayi-Kadir urged the Nigerian government to act swiftly by
creating a more business-friendly environment. “Regulatory agencies must step
up. The Nigerian Ports Authority must forget any idea of increasing port fees.
The 4 percent free-on-board charge being proposed by Customs should be scrapped
completely,” he said.
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