The Manufacturers Association of Nigeria (MAN) has expressed deep concern over the new U.S. tariff policy, warning that it could severely damage the competitiveness of Nigerian-made goods in the American market and undermine Nigeria’s broader economic goals.
In a statement issued on Tuesday, MAN Director-General Segun Ajayi-Kadir said the 14 percent tariff recently imposed by the U.S. government comes at a particularly vulnerable time for Nigeria’s manufacturing sector, which is still reeling from the impact of domestic policy challenges.
“The U.S. accounts for about seven percent of Nigeria’s non-oil exports,” Ajayi-Kadir noted. “This new tariff regime poses a direct threat to that trade relationship, particularly as Nigeria implements an ambitious N55 trillion budget amid falling global oil prices.”
He warned that the tariff increase would make Nigerian goods less attractive to American buyers, especially in key sectors such as agro-processing, chemicals, pharmaceuticals, metals, and light manufacturing.
“This additional cost burden will likely lead to reduced demand for Nigerian products in the U.S., putting export revenue and manufacturing investments at risk,” he said.
Ajayi-Kadir emphasized that over the past decade, manufacturers in Nigeria have made strategic efforts to move from raw material exports to more value-added goods. The U.S. tariff, he said, threatens to reverse that progress by making such exports less profitable and pushing firms to fall back on raw material exports.
“This move contradicts Nigeria’s industrialisation agenda and weakens efforts to diversify exports under frameworks like the African Continental Free Trade Agreement (AfCFTA),” he said.
The MAN chief also flagged the potential employment impact, warning that companies may be forced to cut jobs or scale down production if exports decline significantly.
Beyond the manufacturing sector, Ajayi-Kadir cautioned that Nigeria’s overall trade position could deteriorate. A sharp drop in exports to the U.S., he said, could wipe out the country’s current trade surplus and tip it into a deficit, further straining an already fragile external sector.
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He also expressed concern about potential pressure on Nigeria to lower its own tariffs on American imports in response.
“While this could be presented under the guise of promoting ‘fair trade,’ the reality is that such a move could flood the Nigerian market with subsidised U.S. goods, undermining local producers,” he warned.
Ajayi-Kadir further noted that Nigeria lacks the institutional and technical capacity for complex trade negotiations, making it vulnerable in global trade disputes.
“Advanced economies with strong legal and economic structures can push for favorable terms, but Nigeria is at a disadvantage due to these capacity gaps,” he added.
The 14 percent tariff on Nigerian exports was part of sweeping global trade measures announced by former U.S. President Donald Trump on April 2.
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