The Manufacturers Association of Nigeria (MAN) has said President Donald Trump‘s 14 percent tariff on Nigerian goods to the United States will affect the nation’s economy.
Naija News reports that the Director General of MAN, Segun Ajayi-Kadir, disclosed this in a statement, on Tuesday, titled, ‘MAN Position on the US Tariff Hike on Nigerian Manufacturing Sector and the Broader Economy’.
Ajayi-Kadri explained that MAN members who export agro-products to the United States market have been affected by the new tariff.
“MAN members who are exporters in agro-processing, chemicals and pharmaceutical, basic metal, iron and steel, non-metallic mineral products and other light industrial manufacturing rely heavily on the US for market access.
“With increased costs for American buyers due to the tariffs, demand for Nigerian products is expected to decline.
“For instance, processed agricultural goods such as cocoa derivatives, sesame seeds, and ginger, which have gained modest penetration in US markets, are likely to witness a drop in export volume.
“According to the National Bureau of Statistics, agricultural exports accounted for over ₦4.42 trillion in 2024, with the US being one of the top destinations. The tariff could potentially wipe out ₦1 to ₦2 trillion of that figure annually,” he said.
MAN DG stated except for revenue loss, the 14 percent tariff increase posed a significant disincentive to firms investing in value-added manufacturing. He stressed that it also affected Nigeria’s industrialization agenda.
“In addition to revenue losses, the new tariffs pose a significant disincentive to firms investing in value-added manufacturing.
“Over the past decade, manufacturers have made concerted and strategic efforts to support the country’s transition from exporting raw commodities to semi-processed and finished goods.
“However, higher market-entry costs because of higher tariff on Nigerian products reduce the profitability of such investments, making it more attractive for firms to revert to exporting raw materials.
“This is counterproductive to Nigeria’s industrialisation agenda and compromises the long-term goal of achieving export diversification under platforms such as the African Continental Free Trade Agreement (AfCFTA),” he stated.
He added that the new tariff could lead to job losses, thereby adding to the nation’s unemployment rate.
“Contract manufacturers, small-scale industrialists, and firms operating in special economic zones targeting the US market are likely to be worst hit.
“This could lead to job losses at a time when the national unemployment rate remains high, and youth underemployment continues to pose a socio-economic threat,” he added.
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