ABUJA (Sundiata Post) – Recent trade tensions between the United States (U.S.) and several countries have created unprecedented economic challenges, likewise some opportunities across the global economic terrain.
As with most tensed situations, many victims, countries in this case, suffer varying degrees of effects, depending on their fortifications, preparedness and abilities to navigate economic turbulences.
The U.S. had on April 2 declared a 14 per cent tariff on all Nigerian exports and this development had broad implications on the country’s trade balance and its economic diversification agenda.
Also, the fate of many of its Micro, Small and Medium Enterprises (MSMEs) alongside players in the manufacturing and agricultural sector appears to be in the balance due to the development.
While Nigeria has towed the consultations route with U.S and World Trade Organisation (WTO) on how to turn the situation to benefit the country, some economic stakeholders have lent their voices on the way forward.
Director-General, Chartered Institute of Directors Nigeria (CIoD), Dr Bamidele Alimi, noted that in response to the shifting trade policies globally, companies must seek to restructure their operations.
Alimi noted that amidst the difficulties of the tariff impositions lied potential advantages, including new trade partnerships, alternative export markets, and investment possibilities.
He stated that the current trade situation may create strategic opportunities for forward-thinking businesses, prompting a realignment of global trade partnerships, potentially benefitting Nigeria.
According to him, this could help develop stronger trade relationships with countries affected by the tariff war, potentially opening new export markets.
“As China and other tariff-affected countries seek alternative destinations for their products, our nation might become an attractive investment destination.
“This could lead to technology transfer and manufacturing expansion, potentially strengthening local production capabilities and creating jobs.
“Businesses that are prepared to form strategic partnerships with international companies seeking to circumvent tariffs might find unprecedented growth opportunities,” he said.
Alimi advocated stronger intra-African trade networks to provide some insulation against external trade disputes whilst creating new markets for Nigerian products throughout the continent.
He also urged businesses to consider forming industry associations or cooperative arrangements to increase their collective bargaining power when dealing with international suppliers and customers.
President, Lagos Chamber of Commerce and Industry (LCCI), Mr Gabriel Idahosa, stated that to navigate the trade war challenges, Nigeria must begin to lead conversations around the Africa Growth and Opportunity Act (AGOA).
He said the country must explore other multilateral platforms to sustain opportunities.
Idahosa stressed that Intra-African trade under the African Continental Free Trade Area (AfCFTA) should be aggressively promoted.
He also recommended an urgent review of Nigeria’s national trade policy to reflect emerging global realities.
According to him, Nigeria’s trade, tax, and customs regimes must be modernised to align with WTO rules and safeguard Nigerian interests.
“We urge the federal government to incentivise local production and value addition in agriculture, mining, and manufacturing.
“Exporting commodities in their primary state must give way to processed finished Nigerian goods that command higher global value,” he said.
Also, the Bashir Adeniyi Centre for International Trade and Investment (BACITI) of the Nigerian Institute of International Affairs (NIIA), noted that while Africa was not the target of the U.S. tariffs, it was caught in the crossfire.
Dr Adesuwa Erediauwa, its Senior Research Fellow, said Africa faced both a challenge and a wake-up call to strengthen regional integration via AfCFTA, diversify exports, and compete globally without reliance on preferential access.
She noted that the U.S. tariff would hit Nigeria’s small non-oil export sector hardest as the country’s agricultural and manufacturing MSMEs that had carved out a market in the U.S. now face a price disadvantage.
Erediauwa said Nigeria must view the U.S. tariff episode as a catalyst for structural transformation.
She added that the country’s long-term economic resilience depends on industrialisation and a strategic shift from raw commodity exports to value added finished goods.
“To reduce vulnerability to external shocks, Nigeria must accelerate the diversification of both its economy and export base.
“Reducing over-reliance on crude oil is essential for macroeconomic stability and sustainable development.
“Priority growth sectors such as agro-processing, solid minerals, digital services, and manufacturing must be scaled through targeted investment, infrastructure development, and supportive policy frameworks,” she said.
Though the new U.S. trade tariffs and trade war may seem like a setback, they present a vital opportunity for Nigeria and Africa to reassess, rethink, and strengthen their economic foundations.
The Nigerian government must strengthen its support for exporters through loans, tax rebates, financial interventions while it partners relevant agencies to identify new markets.(NAN)
