The Sea Empowerment & Research Center (SEREC) recently cautioned that the United States’ move to levy a 12.5% tariff on Nigerian goods could damage the nation’s push for non-oil exports. If left unaddressed, this change might diminish foreign exchange revenue and exacerbate current economic vulnerabilities. In a report titled, “The U.S. 12.5 per cent Tariff on Nigerian Exports: Implications for Nigeria’s External Trade and Fragile Economy,” the center explained that this update, which succeeds a temporary 10% rate, will likely handicap the competitiveness of Nigerian products within the American market.
While Nigeria was not the specific target of these measures, SEREC emphasized that inclusion in this higher tariff category creates significant uncertainty for industrial progress and the future of trade ties between the two nations. Although crude oil may remain largely unaffected due to existing exemptions, agricultural items and manufactured goods will be hit hardest. Specifically, products such as cocoa, cashew, sesame seeds, leather, and various processed foods are considered highly vulnerable.
The organization warns that higher duties will raise landing costs, forcing American importers to choose cheaper options from rival nations. This shift could lead to decreased export revenue, increased pressure on the naira, and significant job losses across the logistics and manufacturing sectors. From a maritime standpoint, a decline in shipments will likely result in lower port activity and reduced earnings for terminal operators and freight forwarders.
To mitigate these risks, SEREC recommends that the federal government initiate dialogue with the U.S. Trade Representative to understand the reasoning behind the tariff. Additionally, the center suggests improving supply chain traceability, focusing on the African Continental Free Trade Area, and lowering operational costs through port and customs reforms to protect Nigerian exporters.
