Nigeria’s projection to achieve $7 billion non-oil exports for 2025 is on the verge of failure given President Donald Trump’s 14 per cent retaliatory tariff slammed on Nigeria.
As a result, local manufacturers and exporters eyeing US markets are now reviewing their export plans over high costs of freight, documentations and others from their brokerage partners in the US, New Telegraph has authoritatively learnt.
The Nigerian Export Promotion Council (NEPC) had announced a significant milestone, revealing that the country’s non-oil exports trade volume for 2024 reached 7.2 metric tonnes, marking a 20.7 per cent increase in value, which totals $5.45 billion. However, the Federal Government is expecting to leapfrog from $5.45 (2024) to $7 billion for this year.
In an exclusive interview with New Telegraph from US, former Chairman of Lagos Chamber of Commerce and Industry (LCCI) Small and Medium scales Enterprise Group (SMEG), Dr Jon Tudy Kachikwu, gave a snapshot of the mitigating effects of the US 14 per cent tariff imposed on Nigeria, saying that China’s bilateral trade relationship with Nigeria was one of the reasons for the tariff increment and Nigeria’s refusal to allow 25 or more US products into Nigeria.
Kachikwu, a Nigerian entrepreneur who has been going to US for business and exports of goods from Nigeria for 38 years, disclosed that the 14 per cent tariff would bring disruption to local manufacturers and exporters in Nigeria targeting US markets, especially on additional freight costs and the high inflation rate it would bring to the US as Americans struggle for purchasing power to buy products from Nigeria.
Specifically, he pointed out that the inability of the Federal Government to make Export Expand Grant (EEG) available for local manufacturers and exporters into export, particularly those exporting to the US as a shortfall for the additional 14 per cent would make many of the exporters to jettison their export products to the US.
On Nigeria missing out in achieving the $7 billion non-oil exports trade projection in 2025, Kachikwu noted: “The truth is that $7 billion revenue target may not be met this year again because of the retaliatory tariffs imposed by President Trump and their disruptions to the global trade.
The reason being that you know once there is inflation that means the US workers would not have much money at their disposal, their purchasing power would be less, and moreover, many people are losing jobs already.
“Although, as they are losing jobs here, they have benefits, unlike back home in Nigeria, when you lose job you lose no benefits; even if you work 30, 40, 50 years in Nigeria, nothing you can fall back to.
But here, there is something that they call social security: you have already contributed to that social security so social security would pay you, government would take care of you pending the time when you get another job their perspectives on regional peace, particularly in the eastern Democratic Republic of Congo (DRC) and across the Sahel.
Trump’s advisor recognized Nigeria’s regional and continental leadership and supported Tinubu’s interventions to stabilize key African “So, once you get another job, they would know because of your social security number.
So, that target would not be met because the demand would definitely reduce if the purchasing power of an average American has reduced due to retrenchment from government agencies and departments.
“The only thing Nigerian government is supposed to do now is to be aggressive in encouraging exporters. To shore up the shortfall, the 14 per cent they are going to pay, Federal Government is supposed to give grant to manufacturers and exporters.
Unfortunately, Nigerian government is paying lip service to export. Maybe, because of the crude oil that is giving us money too. But look at Ghana, our neighbor; do you know that my neighbour here in US imports yams from Ghana?
“Although the yams are not entirely Ghanaian yams, because you can bring Nigerian yam here to the US. But the point I am trying to make here is: Ghana government values exports.
