The Manufacturers Association of Nigeria (MAN) has cautioned that the newly announced 14 percent U.S. tariffs on Nigerian exports currently paused for 90 days could significantly undermine Nigeria’s manufacturing sector, shrink export volumes, and erode ongoing efforts to diversify the economy away from oil dependence.
In a statement released on April 15, MAN warned that the tariffs, once implemented, would drastically reduce the competitiveness of Nigerian-made goods in the U.S. market currently one of the country’s largest non-oil trading partners.
“With increased costs for American buyers due to the tariffs, demand for Nigerian products is expected to decline,” said Segun Ajayi-Kadir, Director General of MAN. “This is particularly concerning for processed agricultural exports like cocoa derivatives, sesame seeds, and ginger, which have made inroads into U.S. markets in recent years.”
Citing figures from the National Bureau of Statistics, Ajayi-Kadir noted that Nigeria’s agricultural exports reached ₦4.42 trillion in 2024, with a significant share headed to the United States. He warned that the tariffs could “potentially wipe out between ₦1 trillion to ₦2 trillion” of that total annually.
Tariffs Threaten Gains in Value-Added Manufacturing
Ajayi-Kadir also emphasized that the impact of the U.S. protectionist measure extends beyond revenue losses. According to him, the tariffs act as a disincentive to the country’s hard-fought progress in value-added manufacturing, a pillar of Nigeria’s industrialisation agenda.
“In the last decade, manufacturers have made deliberate efforts to shift from exporting raw commodities to semi-processed and finished goods,” he said. “But higher entry costs due to tariffs erode the profitability of these investments, pushing firms to fall back on raw material exports.”
The association warned that this trend is counterproductive to Nigeria’s goals under the African Continental Free Trade Agreement (AfCFTA), which aims to position the country as a manufacturing and export hub on the continent.
Jobs and Trade Surplus at Risk
The broader economic consequences, MAN said, could be dire particularly for employment and macroeconomic stability. Small-scale industrialists, contract manufacturers, and firms operating in export processing zones geared towards the U.S. market are expected to be the worst hit.
“The ripple effect of lost export opportunities will include production cuts, job losses, and plant shutdowns at a time when Nigeria is already contending with high unemployment and youth underemployment,” Ajayi-Kadir noted.
He added that Nigeria’s participation in regional and global supply chains especially in pharmaceuticals, food and beverages, chemicals, and motor vehicle assembly could also be compromised, as U.S. companies may begin to look elsewhere for more cost-competitive sourcing partners.
Economic Stability Threatened
MAN’s statement also drew attention to the implications of the tariffs on Nigeria’s already fragile external sector. With export volumes likely to shrink, the country’s trade surplus could quickly evaporate.
“This will have immediate consequences on the nation’s balance of payments and may force the Central Bank of Nigeria to intervene more aggressively in the forex market,” Ajayi-Kadir warned. “That would place additional pressure on foreign reserves and weaken the naira further, reducing the country’s buffer for managing future macroeconomic shocks.”
A Call for Dialogue and Support
While the 90-day pause offers a window of opportunity, MAN is urging the Nigerian government to step up engagement with U.S. trade officials, leveraging diplomatic and economic channels to secure exemptions or reconsideration of the tariffs.
“This is not just a trade policy issue it’s a national development concern. Nigeria cannot afford to lose the momentum it has built in industrialisation and non-oil exports,” the association said.
MAN’s warning comes amid broader concerns across the African continent, where several economies are bracing for the impact of the U.S. administration’s recent wave of tariffs under President Donald Trump, particularly on exports from developing nations.
