The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to accelerate export diversification following the United States of America’s 12.5 per cent tariff on selected Nigerian exports.
The CPPE gave the advice in a policy brief signed by its Chief Executive Officer, Dr Muda Yusuf, on Sunday in Lagos.
The Centre said the new U.S. tariff underscored the need for Nigeria to build a more resilient and competitive export sector.
It said the government should place greater emphasis on expanding non-oil exports to reduce dependence on crude oil earnings.
According to the CPPE, stronger manufacturing competitiveness is critical to improving Nigeria’s position in global export markets.
It also called for increased domestic value addition to improve the competitiveness of Nigerian products and create more jobs.
The Centre urged the government to deepen regional trade under the African Continental Free Trade Area to widen market opportunities for local exporters.
It also advised Nigeria to strengthen labour standards and improve supply chain transparency to align with evolving global trade requirements.
The CPPE said the Federal Government should engage the U.S. through diplomatic and trade channels to clarify implementation of the new tariff measures.
It said proactive engagement could minimise potential adverse effects on Nigerian exporters, particularly those in agriculture and manufacturing.
The Centre noted that the latest tariff reflected a growing global trend toward protectionism and strategic use of trade policies.
It said Nigeria must prepare for such changes by improving productivity and expanding the competitiveness of locally produced goods.
The government should place greater emphasis on expanding non-oil exports to reduce dependence on crude oil earnings, asstronger manufacturing competitiveness is critical to improving Nigeria’s position in global export markets.
The CPPE, however, noted that the immediate economic impact of the tariff on Nigeria would likely remain limited.
It explained that crude oil, liquefied natural gas and other petroleum products accounted for more than 80 per cent of Nigeria’s exports to the United States.
The Centre noted that those products had been exempted from the new tariff measures.
It also said the U.S. was only Nigeria’s fifth largest export destination in the first quarter of the year.
According to the CPPE, exports to the U.S. accounted for 5.56 per cent of Nigeria’s total exports valued at about N21.6 trillion during the period.
Meanwhile India, France, the Netherlands and Spain ranked ahead of the United States of America as destinations for Nigerian exports.
The CPPE maintained that though some exporters could face reduced competitiveness, the broader challenge was adapting to an increasingly fragmented global trading environment.
It said sustained reforms to diversify exports and strengthen domestic production remained the country’s best response to changing global trade policies. (NAN)
