US Tariff Hikes, a Prompt for Nigeria, ECOWAS, and Africa to Reposition Economies

The Nigerian Government in a press release in March 2026 responds to US Tariff Measures. While acknowledging the recent tariff measures announced by the US government, including a 14% tariff on Nigerian exports, this development has potential implications for global trade, says Dr. Jumoke Oduwole, Honorable Minister of Industry, Trade and Investment. She further states that Nigeria remains committed to building economic resilience and accelerating export diversification under President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Key Highlights of the Press Release

• US-Nigeria Trade Relations: The US is a valued trade and investment partner for Nigeria, with bilateral trade valued between $5-6 billion annually.
• Export Breakdown: Crude petroleum, mineral fuels, oils, and gas products dominate Nigeria’s exports to the US (over 90%), followed by fertilizers and urea (2-3%), and lead (1%).
• New Tariff Impact: A 10% tariff on key categories may affect the competitiveness of Nigerian goods in the US market, particularly in emerging and value-added sectors.
• Government Response: Nigeria is actively engaged in consultations with US counterparts and the WTO to find mutually beneficial solutions.

Minister’s Statement
Dr. Jumoke Oduwole, Honorable Minister of Industry, Trade and Investment, said the ministry is approaching this moment with pragmatism and purpose, turning global and regional trade policy challenges into opportunities to grow non-oil exports and build a more resilient economy.

Next Steps
The Nigerian government is implementing interventions in policy, financing, infrastructure, and diplomacy to help businesses remain competitive amidst regional and global tariff hikes. This includes expanding alternative market access opportunities and ensuring off-take diversification to reduce trade risks.

Africa’s Trade Future
This development highlights the need for Africa to enhance intra-African trade through the African Continental Free Trade Area (AfCFTA) and leverage frameworks like the Pan-African Payment and Settlement System (PAPSS) to lower trade costs and promote regional integration.

The recent US tariff regime presents a significant opportunity for ECOWAS and Africa to strengthen their economic bloc and reduce dependence on external markets. Here are some key points to consider:

Enhanced Regional Trade
ECOWAS is amplifying African trade through the accelerated implementation of the African Continental Free Trade Area (AfCFTA) agreement, aiming to integrate West African economies into the African market. This move is expected to boost intra-African trade, with potential increases in regional trade valued at 11.1% if products from Categories A and B are liberalized.

Economic Resilience
By implementing the AfCFTA, ECOWAS can reduce its reliance on external markets and build economic resilience. The agreement is designed to promote economic upliftment of women and youth, efficient trade integration, and national AfCFTA strategies.

Key Statistics

• Tariff Revenue Losses: ECOWAS is projected to experience a progressive loss in tariff revenue from year 1 to 13, with estimated losses ranging from $262.7 million to $201.9 million under different liberalization scenarios.
• Import Increases: ECOWAS tariff concessions under the AfCFTA are expected to result in relatively small import increases of 1.3-1.8%.
• Intra-African Trade: The AfCFTA aims to increase intra-African trade from 14.8% to 16.2% through the liberalization of products from Categories A and B.

Strategic Opportunities
To maximize the benefits of the AfCFTA, ECOWAS should focus on:

• Reforms: Implementing reforms that stimulate regional trade and growth, as suggested by Jibran Qureishi, Head of Africa Research at Standard Bank Group.
• Diversification: Diversifying exports to reduce dependence on crude petroleum, mineral fuels, oils, and gas products, which currently dominate Nigeria’s exports to the US.
• Regional Integration: Strengthening regional integration through the AfCFTA and leveraging frameworks like the Pan-African Payment and Settlement System (PAPSS) to lower trade costs and promote intra-African trade.

Conclusion
The new US tariff regime presents an opportunity for ECOWAS and Africa to strengthen their economic bloc and reduce dependence on external markets. By implementing the AfCFTA and focusing on reforms, diversification, and regional integration, ECOWAS can build economic resilience and promote sustainable development.