The Nigerian Economic Summit Group (NESG) has emphasized the need for Nigeria to reevaluate and diversify its trade partnerships, particularly by shifting focus towards countries that remain unaffected by the tariffs imposed by the United States. This recommendation is articulated in the NESG’s latest Foreign Trade Alert for the fourth quarter of 2024 and the full year 2024.
The report highlights the vulnerabilities faced by Nigeria’s import-dependent industrial sector amid global trade disruptions.
It states, “The trade tensions between the U.S. and China necessitate strategic mitigation measures. Such an approach would help minimize tariff-induced increases in import costs, particularly for Nigeria’s non-oil industrial sector, which is significantly affected by these developments.”
In February 2025, the United States implemented a 10 percent tariff on imports from China, with intentions to raise this rate by an additional 10 percent in April. In response, China announced additional tariffs of 10-15% on select U.S. imports beginning March 10, 2025, alongside a set of export restrictions targeting designated U.S. entities.
These actions are anticipated to disrupt global supply chains, impede world trade growth, and elevate prices of globally traded commodities.
Given Nigeria’s pronounced reliance on imported manufactured goods and raw materials, the NESG warns that further escalation of these trade tensions could pose significant economic challenges for the country.
As of the fourth quarter of 2024, China remains Nigeria’s largest trading partner, followed by India, Belgium, the United States, and France.
Key imported commodities during this period included refined petroleum products, sugar cane, and spare parts.
However, Nigeria’s heavy dependence on imports, especially from China, exposes the country to volatility in pricing and potential supply chain disruptions arising from the ongoing U.S.-China trade conflict.