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Nigerian officials raised concerns about sweeping US tariffs, which came into full effect today, saying they could negatively impact Africa’s largest oil producer as crude prices drop over fears of a global recession.
The Trump administration imposed a 14% tariff on imports from Nigeria as part of last week’s “Liberation Day” announcement, blaming “unfair trade practices” that Washington says harm US exporters, including Nigeria’s import bans on items such as beef, pork, and certain pharmaceuticals.
The tariffs themselves have limited direct impact on Nigeria, given that oil and gas purchases are exempt. But they have served to drive oil prices down: Crude traded at four-year lows on Tuesday, edging towards the $60 mark. For Nigeria, which gets about 90% of its foreign exchange earnings from oil exports, that amounts to significant lost income. “It’s the price effect, the oil price effect that may affect Nigeria,” the country’s finance minister said.
The government’s $37 billion budget for 2025 — with its $8 billion deficit — was benchmarked against an international oil price of $75 a barrel.
