According to the Center for the Promotion of Private Enterprise, Nigeria’s economy may not be significantly impacted by the shocks of the current tariff war imposed by US President Donald Trump’s administration.

In a statement released on Thursday, Dr. Muda Yusuf, the CEO of CPPE, revealed this.

His remarks coincide with Trump imposing a 10% tariff on all imports and a number of levies on nations on Wednesday.

World leaders, including those from China, Germany, and Spain, were outraged by the action.

In response, CPPE stated that the Nigerian economy may not be particularly vulnerable to the shocks of the present trade war that President Trump has unleashed. Nigeria’s exposure to the US in terms of external trade is typically around 10%.

Nigeria exported 5.7 billion dollars, or 11.3%, of its 50.4 billion dollar total merchandise exports in 2024 to the United States. The Nigerian economy is unlikely to be significantly disrupted by a tariff effect on roughly 10% of total exports.

Crude oil, petroleum gas, and nitrogenous fertilizer are among Nigeria’s top exports to the United States. However, the largest US exports to Nigeria are petroleum, wheat, and automobiles.

Spain, France, the Netherlands, and Italy are some of Nigeria’s other top export markets. Nearly 90% of Nigeria’s exports are made up of oil and gas products. For around thirty years, this has been the case.

Nonetheless, there can be other indirect effects on the Nigerian economy. The AGOA trade window has essentially been closed by the Trump administration.

Second, the United States would experience inflationary pressures as a result of the trade war and the retaliatory tariffs that followed. This could lead to higher prices for American imports into Nigeria. Thirdly, the tariff war is probably going to cause some degree of disruption in global supply chains. Crude oil prices may be impacted, and the prospects for global growth may be dampened. Nigeria’s foreign reserves and income would be impacted by a drop in the price of oil.However, there are also chances to find new trading partners around the world.

Numerous nations impacted by the ongoing trade conflict would look to establish new bilateral economic links, which might open doors for Nigerian investors, according to CPPE.