The Centre for the Promotion of Private Enterprise (CPPE) has urged the federal government to accelerate export diversification following the United States’ decision to impose a 12.5 per cent tariff on selected Nigerian exports.
The recommendation was contained in a policy brief signed by the chief executive officer of the CPPE, Dr. Muda Yusuf, on Sunday in Lagos.
The Centre said the new U.S. tariff highlights the urgent need for Nigeria to build a more resilient and competitive export sector by reducing its dependence on crude oil earnings and expanding non-oil exports.
According to the CPPE, strengthening the competitiveness of the manufacturing sector is critical to improving Nigeria’s position in global export markets.
It also called for increased domestic value addition to enhance the competitiveness of Nigerian products, stimulate industrial growth and create more jobs.
The Centre urged the Federal Government to deepen regional trade under the African Continental Free Trade Area (AfCFTA) to expand market opportunities for Nigerian exporters.
It further advised the government to strengthen labour standards and improve supply chain transparency to ensure compliance with evolving global trade requirements.
The CPPE also called on the Federal Government to engage the United States through diplomatic and trade channels to clarify the implementation of the new tariff measures.
According to the Centre, such proactive engagement could help minimise potential adverse effects on Nigerian exporters, particularly those operating in the agriculture and manufacturing sectors.
The policy brief noted that the latest tariff reflects a growing global trend toward protectionism and the strategic use of trade policies, stressing that Nigeria must respond by improving productivity and enhancing the competitiveness of locally manufactured goods.
The CPPE, however, said the immediate economic impact of the tariff on Nigeria is likely to be limited, explaining that crude oil, liquefied natural gas and other petroleum products account for more than 80 per cent of Nigeria’s exports to the United States and have been exempted from the new tariff measures.
It also noted that the United States ranked as Nigeria’s fifth-largest export destination in the first quarter of the year, accounting for 5.56 per cent of the country’s total exports valued at about N21.6 trillion during the period.
The Centre added that India, France, the Netherlands and Spain ranked ahead of the United States as destinations for Nigerian exports.
While acknowledging that some exporters may experience reduced competitiveness, the CPPE maintained that the broader challenge for Nigeria is adapting to an increasingly fragmented global trading environment.
It stressed that sustained reforms aimed at diversifying exports and strengthening domestic production remain the country’s most effective response to changing global trade policies.
