The Centre for the Promotion of Private Enterprise (CPPE) has downplayed concerns over the United States Government’s decision to impose a 12.5 percent tariff on imports from Nigeria, stating that the measure is unlikely to have any significant impact on the country’s export earnings or broader economic performance.
In a statement issued on Sunday, the Chief Executive Officer of CPPE, Muda Yusuf, said the new tariff regime is a continuation of the reciprocal trade policy introduced during the Donald Trump administration, although it is now being implemented under a different legal framework.
According to him, following the judicial invalidation of the earlier reciprocal tariffs, the latest measures appear to have been restructured under Section 301 of the U.S. Trade Act, with allegations relating to forced labour serving as the statutory basis for their implementation.
He explained that despite the legal changes, the underlying objective of the policy remains unchanged, namely to protect U.S. domestic industries, strengthen American manufacturing competitiveness and advance broader U.S. trade and economic interests.
CPPE noted that Nigeria’s economy has limited exposure to the new tariffs because the country’s exports to the United States are overwhelmingly dominated by crude oil, liquefied natural gas and other petroleum products, which account for more than 80 percent of Nigeria’s merchandise exports to the U.S. These products have been exempted from the tariff measures.
“The bulk of Nigeria’s exports to the United States remain unaffected,” the statement said.
The economic policy think tank further observed that the United States is not Nigeria’s largest export destination. Citing Nigeria’s first quarter 2026 merchandise trade statistics, CPPE said total exports stood at about ₦21.6 trillion, with exports to the United States accounting for only 5.56 percent.
By comparison, India accounted for 13.09 percent of Nigeria’s exports during the period, followed by France with 9.29 percent, the Netherlands with 9.22 percent and Spain with 7.68 percent, leaving the United States as Nigeria’s fifth-largest export market.
According to the organisation, these trade patterns substantially reduce Nigeria’s vulnerability to the new tariff regime.
While acknowledging that some non-oil exporters, particularly those in the agriculture and manufacturing sectors, may experience reduced competitiveness in the U.S. market, CPPE maintained that the overall impact on export earnings, foreign exchange inflows and macroeconomic stability would be modest.
“It is essentially a question of materiality,” Yusuf said, explaining that the products affected by the tariffs account for only a small proportion of Nigeria’s total exports, while the country’s dominant export category to the U.S. remains exempt.
Beyond the immediate impact, CPPE said the development reflects a broader shift in global trade policy, with countries increasingly adopting protectionist measures, industrial policies and strategic trade instruments to support domestic economic objectives.
The organisation said the changing global trade landscape reinforces the need for Nigeria to accelerate export diversification, improve manufacturing competitiveness, deepen domestic value addition and maximise opportunities under the African Continental Free Trade Area.
CPPE also urged the Federal Government to strengthen labour standards, improve supply chain transparency and engage proactively with the United States through diplomatic and trade channels to obtain greater clarity on the implementation of the new tariff measures while mitigating potential adverse effects on affected exporters.
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