The Nigerian Economic Summit Group (NESG) has advised the Federal Government to consider a review of its tariff policies and renegotiate trade terms with strategic international partners in view of the potential negative impact of US US President Donald Trump’s protectionist policies on global merchandize trade.
The private sector think-tank, in its just published report titled “Trump’s Policy Playbook 2.0: Strategic Implications of US Reciprocal Tariffs for the Nigerian Economy and Way Forward”, described the revision of the nation’s tariff policies as imperative in order to ensure the nation’s economic growth.
The publication assesses the implications of the US’s likely impacts of reciprocal tariffs and nationalistic trade policies and proposes strategic options for Nigeria’s economic policy managers.
In view of the implications for the nation’s economy, the NESG canvassed: “Nigeria should deepen its diplomatic relations with its major trading partners to avoid losing larger markets for its products. The government needs to revise its tariff regimes or negotiate new trade terms, seeking new bilateral trade relationships, which may unlock new opportunities for Nigerian investors. The country can adopt selective tariffs depending on the degree of sectoral vulnerability to external trade.”
- Advertisement -
It cautioned that a continuation or escalation of reciprocal tariffs by the United States could engender a domino effect globally, disrupting the already fragile trade environment for developing countries like Nigeria, stressing that the Federal Government must take preemptive steps to protect key sectors of the nation’s economy and ensure access to critical export markets.
In addition, the economic think-tank harped on the importance of improving the competitiveness of Nigeria’s oil and gas sector, especially in the face of the current substantial import bills on refined petroleum products.
The NESG further clarified: “Mineral fuel (including petrol) imports account for at least 30% of Nigeria’s import bills per annum. Hence, ongoing efforts to revitalise the state-owned refineries should be strengthened to improve local oil refining.
“Substantial investments in the downstream oil and gas sector are needed to make it more competitive globally. This would further reduce the reliance on imported fuel products, boost FX savings and taper the pressure on the FX market.”
As a way forward, the group advised the government to diversify Nigeria’s export base, introduce industrial policies that can withstand shocks from external trade disruptions, and scale up Nigeria’s participation in regional trade blocs, particularly the African Continental Free Trade Area (AfCFTA), as a buffer against external volatility from other regions globally.
It would be recalled that President Donald Trump had on April 2 this year announced sweeping tariff measures, including a 10 percent baseline tax on all imports into the U.S and higher tariff rates on countries with trade surpluses with his country.
