The Federal Government is reassessing economic strategies and exploring potential scenarios to mitigate the possible negative impact of the United States tariffs on the Nigerian economy.
A multi-sectoral economic management team is critically analysing data, revenues, projections, opportunities and weak points in response to the recent 14 per cent tariff imposed by the U.S. on all products imported from Nigeria.
Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun and the Ministry of Foreign Affairs yesterday in Abuja allayed any worries over President Donald Trump’s trade policies, which continue to rattle global stakeholders.
Edun, who spoke at the launch of a corporate governance scorecard for government-owned enterprises, said members of the economic management team are re-evaluating national economic assumptions in the light of the new tariff regime.
The Ministry of Foreign Affairs said the government would consider all possibilities and respond appropriately.
Edun said the economic team was reviewing current projections and the underlying assumptions in the budget, particularly those for the first quarter of the year, to assess how the new external trade dynamics could impact fiscal performance and trade volumes.
According to him, the US tariffs could be a mixed bag of opportunities and challenges, and the country would respond in strategic ways that prioritise the sustainable growth of the economy.
In a wide range of tariffs targeted at the country’s trading with the U.S., President Donald Trump last week slammed a 14 per cent levy on imports from Nigeria.
The announcement sent capital across the world, including the U.S., tumbling.
Another side effect is the crash in the price of crude which is now between $65 and $67.
Edun said: “We are going back to the drawing board to look at our budget all over again.
“We have to see what changes have occurred in the assumptions that underlay the production of that budget and compare them to the reality observed in the first quarter, as well as projections.
“It’s not too bad, especially compared to countries like Vietnam that are facing 46 per cent tariffs. This situation presents Nigeria with an opportunity.
“Given our relatively stable economy and attractive investment environment, if production is becoming unfeasible in countries like Vietnam, companies can consider Nigeria instead.”
While the newly imposed tariffs are not expected to affect Nigeria’s oil and mineral exports to the U.S.—sectors that form a major component of the country’s export revenue—non-oil exports have been affected by a 14 per cent tariff, a development that calls for strategic repositioning.
