The Nigerian Economic Summit Group (NESG) has called on the Federal Government to immediately update its tariff policies and initiate new trade negotiations with key global partners in response to the emerging wave of American protectionist measures that mirror U.S. President Donald Trump’s approach to international trade.
This guidance comes from a recently published NESG analysis titled “Trump’s Policy Playbook 2.0: Strategic Implications of U.S. Reciprocal Tariffs for the Nigerian Economy and Way Forward.”
On April 2, 2025, President Trump fulfilled his campaign promise by implementing a 10 percent baseline tax on all imports entering the United States, with additional tariff increases targeting nations that maintain trade surpluses with America.
The analysis examines the potential consequences of America’s reciprocal tariffs and nationalistic commercial strategies, while suggesting tactical responses for Nigeria’s economic leadership.
According to the NESG, “Nigeria should deepen its diplomatic relations with its major trading partners to avoid losing larger markets for its products. The government needs to revise its tariff regimes or negotiate new trade terms, seeking new bilateral trade relationships that may unlock opportunities for Nigerian investors. The country can adopt selective tariffs depending on sectoral vulnerability to external trade.”
The economic think tank cautioned that if the United States continues or intensifies its reciprocal tariff approach, it could trigger a worldwide chain reaction, further destabilizing the already precarious trading environment for developing economies such as Nigeria.
As a result, the NESG emphasized that Nigeria must take anticipatory measures to safeguard vital economic sectors and maintain access to essential export destinations.
The organization also highlighted the necessity of enhancing the competitiveness of Nigeria’s petroleum industry, particularly in light of its substantial import expenses.
“Mineral fuel (including petrol) imports account for at least 30% of Nigeria’s import bills per annum. Hence, ongoing efforts to revitalise the state-owned refineries should be strengthened to improve local oil refining,” the report stated.
It added that “substantial investments in the downstream oil and gas sector are needed to make it more globally competitive. This would further reduce reliance on imported fuel products, boost FX savings, and ease pressure on the FX market.”
The publication advocates for expanding Nigeria’s export diversity and implementing robust industrial strategies capable of withstanding disruptions from international trade tensions. It further suggested that Nigeria increase its involvement in regional trade alliances, specifically the African Continental Free Trade Area (AfCFTA), as protection against external market volatility.
Recent trade statistics from the National Bureau of Statistics (NBS) reveal that China and India have become Nigeria’s primary import sources, together accounting for ₦20.31 trillion in total imports.
Emerging patterns from 2024 trade data indicate that Nigeria is increasingly orienting its commercial relationships toward Eastern markets.
