Nigeria’s industrial development at risk from U.S. tariffs, MAN warns
Onome Amuge
Segun Ajayi-Kadir, director general of MAN
The Manufacturers Association of Nigeria (MAN) has voiced strong concerns about the 14 per cent tariff imposed by the U.S on Nigerian exports, warning of potentially devastating consequences for the country’s manufacturing sector and its industrial development.
Segun Ajayi-Kadir, director general of MAN, described the tariff as “harmful to emerging economies” and particularly damaging to Nigeria’s non-oil exports to the US, which reached N5.52 trillion in 2024. Key exports such as processed cocoa, sesame seeds, and ginger are under threat. MAN estimates that annual agricultural export losses could reach N2 trillion.
“This policy will hit local industries hard, especially those working to create jobs and add value,” Ajayi-Kadir stated.
Nigeria’s real sector, which accounted for 8.64 per cent of the nation’s GDP in 2024, is a key player in Africa and the largest in the ECOWAS region. The sector is dominated by the production of cement and building materials, food and beverages, tobacco, chemicals and fertilisers, wood, and textiles. As of 2022, food and beverages, cement, and textiles accounted for 77 per cent of manufacturing output. The sector, comprising 12 sub-sectors including oil refining, cement manufacturing, and textile production, is already strained by infrastructure deficits, unreliable power supply, and rising costs.
MAN’s warning highlights the risk that the US tariff poses to Nigeria’s efforts to increase local value addition. The association fears that manufacturers may revert to exporting raw materials instead of processed goods, undermining initiatives such as the African Continental Free Trade Agreement (AfCFTA). “This could set back our industrial goals significantly,” Ajayi-Kadir cautioned.
Beyond the immediate trade impact, the tariffs also threaten jobs and investor confidence. Nigeria’s manufacturing sector attracted $1.6 billion in investments in 2023, but experts predict a decline if trade disruptions persist. Export-oriented firms may be forced to scale back operations or lay off workers, exacerbating youth underemployment.
Economists also foresee broader macroeconomic repercussions. Nigeria’s 2025 budget of N55 trillion is reliant on export revenues, and a decline in non-oil exports, coupled with global oil prices below $60 per barrel, could put pressure on foreign reserves, weaken the naira, and fuel inflation.
Following the developments, MAN has urged the federal government to respond with robust trade diplomacy and protective policy measures. Ajayi-Kadir cautioned against lowering tariffs on US imports, arguing that this would flood the market with subsidised goods and cripple local production. He stressed the need for coordinated action to protect Nigerian industries and jobs, emphasising that the country’s ambition to become a manufacturing hub must not be derailed by global trade shifts.