U.S. Tariff Impact on Nigeria's Economy Limited, Says Yusuf

In a policy brief issued on Saturday, Dr Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), addressed concerns regarding the new 12.5% tariff imposed by the United States on imports from Nigeria. He stated that the direct implications of this tariff on Nigeria's export earnings and macroeconomic performance should not be exaggerated, asserting that the economic impact is unlikely to be significant.

Yusuf emphasized the importance of Nigeria accelerating export diversification, enhancing manufacturing competitiveness, and increasing domestic value addition, particularly in light of opportunities under the African Continental Free Trade Area (AfCFTA). He also urged the Federal Government to strengthen labor standards and improve supply chain transparency while maintaining engagement with the United States.

The tariff, announced by the Office of the United States Trade Representative (USTR), targets countries that have not enforced prohibitions on goods produced with forced labor. Yusuf noted that over 80% of Nigeria's exports to the U.S. consist of crude oil and liquefied natural gas, which are exempt from the new tariff measures.