Nigerian Manufacturers Position on U.S. Tariffs

• Segun Ajayi-Kadir, MAN DG, during a factory visit to a company in Kano ,recently.

The Manufacturers Association of Nigeria (MAN) has called on the Federal Government not to bow to potential pressure to reciprocate by reducing its own tariffs on U.S. goods entering the Nigerian market.

MAN, in its position document on the new U.S. tariff imposed on Nigeria by President Donald Trump’s administration, said: ” While the U.S. may frame this as a step toward “fair trade,” the reality is that lowering tariffs on U.S. imports could flood the Nigerian market with subsidized goods, thereby undermining local producers.

Segun Ajayi-Kadir, the MAN Director-General, emphasized that this is especially troubling given the weak state of Nigeria’s infrastructure, logistics, and energy supply—all of which already place local manufacturers at a disadvantage.He said: ” Another key concern is the risk of policy diversion.

Nigeria has, in recent years, made commendable strides toward achieving self-sufficiency in several manufacturing segments and diversifying away from oil.

However, succumbing to external pressures to liberalize trade prematurely would reverse these gains.

Instead of supporting domestic production, such actions would signal to investors and industrialists that Nigeria lacks a coherent long-term trade and industrial policy.”

* Projects Fall in Export Revenue by N1 to N2 Trillion

Commenting on the broader impacts of Trump’s tariff on the domestic industries, he referenced the National Bureau of Statistics: ” Agricultural exports accounted for over N4.42 trillion in 2024, with the U.S. being one of the top destinations.

The tariff could potentially wipe out N1 to N2 trillion of that figure annually. As export revenues fall, many companies may reduce their production scale or downsize their workforce to cut costs.

Contract manufacturers, small-scale industrialists, and firms operating in special economic zones targeting the U.S. market are likely to be worst hit.

Nigerian firms that are part of regional or global supply chains—particularly in pharmaceuticals, chemicals, foods, beverages, and motor vehicle assembly—stand to lose their competitive edge as their products become less attractive to U.S. companies seeking sourcing partners.”