CPPE says US tariffs unlikely to significantly harm Nigerian exports
The Centre for the Promotion of Private Enterprise has released a trade impact assessment noting that proposed US 12.5% tariff adjustments are unlikely to significantly harm Nigerian exports.
The Centre for the Promotion of Private Enterprise (CPPE) released a trade impact assessment noting that proposed US 12.5% tariff adjustments are unlikely to significantly harm Nigerian exports. CPPE Chief Executive Dr Muda Yusuf explained that critical non-oil and petroleum trade flows remain insulated under existing bilateral frameworks and duty exemptions.
The assessment provides some reassurance for Nigerian exporters. The US tariffs, which were announced earlier this week, had raised concerns about the impact on Nigerian exports. The CPPE’s assessment suggests that the impact will be limited, as Nigeria’s major exports are either exempt or have existing duty exemptions.
From a Nigerian vantage point, the assessment is a positive sign. However, the tariffs could still affect some sectors, and the Nigerian government must continue to monitor the situation and engage with the US to protect Nigerian exports.
This echoes the 2018 US tariffs on steel and aluminium, which also raised concerns about the impact on Nigerian exports. The mechanism then was different, but the result was the same: a recognition that trade disputes can have significant consequences.
The winners: Nigerian exporters, who may not be significantly affected; and the Nigerian government, which has managed the situation. The losers: the sectors that are affected; and the Nigerian public, who must wait for the full impact to be assessed.
Bottom Line: The CPPE says US tariffs are unlikely to harm Nigerian exports. The assessment is reassuring. The question is whether the assumptions will hold.