Global Tariff War: Nigeria Insulated from Shocks Says Wale Edun

• Reveals plans to adjust 2025 Budget

BY BONNY AMADI WITH AGENCY REPORTS

Nigeria’s minister of finance and coordinating minister of the economy, Wale Edun, says the country is well-positioned to withstand global trade disruptions, including the new United States import tariffs.

On April 2, US President Donald Trump announced sweeping global tariffs on all imports into the country, including Nigeria with a 14.5 percent tariff.

Edun, speaking on Monday during the corporate governance forum organised by the Ministry of Finance Incorporated (MOFI) in Abuja, said while oil and minerals are exempted from the tariffs, the broader economic impact could be felt through declining oil prices.

The minister stressed that Nigeria remains relatively insulated due to early reforms and a shift in economic strategy.

To mitigate potential revenue shortfalls, the minister said the government is prioritising non-oil revenue mobilisation through the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service.

He also highlighted plans for budget adjustments, expenditure prioritisation, and innovative nondebt financing strategies.

“Nigeria-US trade has been in surplus in the last three years (2022-2024),” Edun said.

“Consequently, the tariff effect on exports is negligible if we sustain our oil and minerals export volume.

“The adverse effect on Nigeria will be through oil price plunge, and we are intensifying efforts to ramp up crude oil production to curtail any price effect.

“We are also focusing on non-oil revenue mobilisation by FIRS and Customs.

“Budget adjustment and prioritisation where possible, and also innovative non-debt financing strategies.”

Speaking further, the minister said Nigeria is already pivoting its economic model toward private sector-led growth, equity-based financing, and strategic asset optimisation.

According to Edun, while the government accounts for 10 percent of the gross domestic product (GDP), the private sector owns 90 percent.

He credited President Bola Tinubu’s administration with stabilising key macroeconomic indicators and laying the groundwork for sustainable growth.

“Over the last 18 to 24 months, we’ve seen clear signs of stabilisation,” Edun said.

“Inflation is easing, fuel and food prices are coming down, and GDP growth has remained steady at 3.84% in Q4 of 2024.

“These outcomes have been achieved through a disciplined combination of monetary and fiscal policies.

“Even before this retreat from a rules-based global trading system, Nigeria had pivoted to equity—away from overreliance on debt.

“We’ve accessed concessional and bilateral financing, but our focus is now on revenue generation and private sector investment.”

Highlighting projects such as the Highway Development and Management Initiative (HDMI), Edun pointed to recent partner- ships that have handed over major infrastructure projects — such as the Benin-Asaba expressway — to the private sector, slashing travel time from four hours to one.

“These initiatives are not only saving costs but also attracting private capital. We’ve identified nearly 1,000 kilometres of roads ready for private funding. That’s a real transformation,” he said.

He emphasised that the ad- ministration’s overarching objective is to attract investment, not just through policy rhetoric but by demonstrating corporate readiness and governance in state-owned enterprises.

The minister also confirmed that the 2025 budget already includes a provision for privatisation, which may expand depending on fiscal needs.