On July 24, 2026, the United States government announced a 12.5% import tariff targeting select products from Nigeria and dozens of other nations under a restructured Section 301 framework of the US Trade Act. Despite the new duties, economic analysts confirm that the immediate macroeconomic threat to Nigeria remains contained.
(Right to Left) Bola Tinubu, Donald Trump. Image Credit: /Manuel Balce Ceneta AP
- The US imposed a new 12.5% import tariff on select products from Nigeria and many other countries.
- Crude oil, LNG, and primary petroleum exports from Nigeria are exempt from these tariffs.
- Over 80% of Nigeria’s exports to North America are crude oil and gas, insulating the economy from major impacts of the new tariffs.
- Non-oil exporters, agro businesses, and small manufacturers may see profits reduce, but overall economic stability is expected.
- Experts recommend that Nigerian businesses diversify by expanding intra-African trade, especially through the AfCFTA.
Crucially, crude oil, liquefied natural gas (LNG), and primary petroleum exports are completely exempt from the new duty structure.
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Because crude oil and gas constitute over 80% of total domestic trade with North America, Nigeria’s principal
According to Nigeria’s merchandise trade records for the first quarter of 2026, sales to the United States reached 5.56% of the total ₦21.6 trillion ($15.8 billion) export volume.
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This places North America as the fifth-largest destination for Nigerian exports, behind India, France, the Netherlands, and Spain.
While small non-oil exporters, agricultural vendors, and light manufacturers selling directly into American retail markets may experience squeezed profit margins, broader national indicators point to ongoing economic stability.
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The Centre for the Promotion of Private Enterprise (CPPE), an independent economic policy think tank, confirmed that the measures will have a modest impact on overall GDP and currency inflows.
“CPPE’s assessment is that the new tariff regime represents a continuation of the Trump administration’s reciprocal tariff policy, albeit under a different legal framework.,” noted Dr. Muda Yusuf, Chief Executive Officer of the CPPE, in an evaluation
Even though oil exemptions protect Nigeria’s biggestig nations are making it harder to sell goods abroad
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To stay safe, Nigerian businesses are advised to start selling more within Africa through the African Continental Free Trade Area (AfCFTA) instead of relying so heavily on Western markets.
