CPPE Urges Export Diversification as New US Tariffs Hit Non-Oil Trade

News in Brief:

— The US new tariff on Nigerian imports is expected to have only a limited impact on agricultural exports because the destination accounts for a relatively small share of its market.

— Nigeria is urged to accelerate agricultural export diversification, improve value addition and strengthen competitiveness to adapt to an increasingly protectionist global trading environment.

The Centre for the Promotion of Private Enterprise (CPPE) has said the United States' newly announced 12.5 per cent tariff on imports from Nigeria is unlikely to significantly influence its agricultural export sector. However, some non-oil exporters may experience reduced competitiveness in the American market.

The CPPE's Chief Executive Officer, Dr Muda Yusuf, clarified that the new tariff regime continues the United States' broader protectionist trade policy. It is expected to have only a modest impact on Nigeria because the country's exports to the US remain heavily concentrated in petroleum products, which are exempt from the new measures.

Agricultural Exporters Could Face Competitive Pressure

While crude oil and other petroleum products account for more than 80 per cent of Nigeria's exports to America, and remain outside the scope of the tariffs, Yusuf noted that some non-oil sectors, including agriculture and manufacturing, could face increased challenges.

He said exporters of agricultural commodities and processed products may become less competitive as higher import duties increase the cost of Nigerian products in the US market.

He stressed that the overall impact on Nigeria's agricultural export earnings is expected to remain limited because the United States is not one of the country's largest export destinations.

US Represents Small Share of Nigeria's Food Export Market

Exports to the United States accounted for only 5.56 per cent of Nigeria's merchandise trade in the first quarter of 2026, valued at approximately ₦21.6 trillion.

He noted that India, France, the Netherlands and Spain all imported larger volumes of Nigerian goods during the period, reducing the country's overall exposure to the new US tariff regime.

The CPPE chief added that Nigeria's current trade pattern provides some protection against the immediate effects of the policy.

New Tariffs Reinforce Need for Agricultural Value Addition

Despite the limited short-term impact, Yusuf stated that the policy highlights the importance of strengthening Nigeria's agricultural competitiveness through export diversification and increased domestic value addition.

He urged the country to move beyond exporting raw agricultural commodities by investing in processing industries capable of producing higher-value products for international markets.

According to him, stronger manufacturing capacity and agro-processing would improve the resilience of Nigeria's export sector against changing global trade policies.

AfCFTA Offers Alternative Export Opportunities

Yusuf further encouraged Nigeria to deepen regional trade under the African Continental Free Trade Area (AfCFTA), describing it as an important opportunity for agricultural exporters seeking to diversify markets.

He said expanding access to African markets could reduce dependence on traditional export destinations while creating new opportunities for farmers, agribusinesses and food processors.

The CPPE advised Nigeria to strengthen labour standards, improve supply chain transparency and continue engaging with US authorities through diplomatic and trade channels to minimise the impact of the new measures on affected exporters.

Yusuf added that although the immediate effects of the tariffs are expected to be modest, the broader trend towards global protectionism reinforces the need for Nigeria to build a more competitive, diversified and value-driven agricultural export sector.