Segun Ajayi-Kadir, Director General of the Nigerian Manufacturers Association (MAN), expressed deep concern about the recent tariff hikes proposed by U.S. President Donald Trump, noting that the move poses a serious threat to Nigeria’s manufacturing industry and the country’s broad economic stability.
Ajayi-Kadir described the new tariffs as a strategic move to promote domestic manufacturing in the United States, but warned that such policies pose significant obstacles for Nigerian exporters, especially as the country just began to expand its non-oil export footprint.
He said; “Trump is just in line with his ‘U.S. First’ agenda for the global trade table. But for us, it’s just the momentum we’re just starting to get momentum in manufacturing exports to the United States, which is part of our strategy to alleviate foreign exchange pressure.”
He noted that the United States remains one of Nigeria’s most important trading partners, accounting for nearly 7% of the country’s non-oil exports. In 2024, the trade value between Nigeria and the United States was 9.59 trillion yuan, and Nigeria’s exports reached 5.52 trillion yuan. Now, the imposition of 14% tariffs directly threaten this trade relationship, especially when Nigeria’s budget is $55 trillion, with oil prices falling below the $75 per barrel benchmark.
Ajayi-Kadir stressed that the new tariff system will seriously undermine the competitiveness of Nigerian goods in the US market. Exporters in major sectors, including agricultural processing, pharmaceuticals, chemicals, basic metals and non-metal products, rely on U.S. demand. As the costs caused by the tariffs increase, he said: “We expect demand to drop significantly.”
He noted that commodities of processed agricultural products, such as cocoa derivatives, sesame seeds and ginger (which gained a modest but growing market share in the United States) could see a sharp drop in exports. In 2024, agricultural exports generated more than 4.42 trillion yuan, and the United States is one of the most important destinations. According to Ajayi-kadir, “This new tariff could eliminate $1 to $2 trillion a year.”
On the domestic front, Ajayi-Kadir warned that the ripple effect of the policy could lead to unemployment. “Companies may be forced to cut production or lay off employees to cut costs,” he said. “Contract manufacturers, small and medium-sized businesses and businesses in export-focused economic zones will be hit the hardest.” He added that local companies integrated into global supply chains may also lose their competitive advantage, especially as U.S. partners may seek alternative procurement options.
He further warned that tariff policies could damage investor confidence at a critical moment when Nigeria tried to position itself as the top manufacturing hub in West Africa. In 2023, the manufacturing industry attracted more than $1.6 billion in capital imports. He warned that if the government does not respond with wise, supportive policies, that number could drop significantly in 2025.
Ajayi-Kadir urged the Nigerian government to act quickly by creating a more friendly business environment. “The regulators must be strengthened. The Nigerian Port Authority must forget any idea of increasing port fees. The 4% free boarding fee proposed by the customs should be completely scrapped.”
