The Federal Government is ramping up efforts to increase non-oil revenue and crude oil production as part of measures to cushion the potential economic impact of new U.S. trade tariffs, Minister of Finance Wale Edun has disclosed.
Speaking at the Corporate Governance Forum organised by the Ministry of Finance Incorporated (MOFI) in Abuja on Monday, Edun said the Economic Management Team (EMT) will convene to assess the implications of the 14 per cent tariff recently imposed on Nigerian exports to the United States under the administration of former U.S. President Donald Trump.
“The economic management team will meet to consider the likely impact and make recommendations to mitigate the consequences on the nation’s economy,” he said.
The Trump administration had imposed tariffs ranging between 10 and 65 per cent on exports from several countries, including Nigeria. While Nigeria faces a 14 per cent tariff on its exports to the U.S., Edun noted that oil exports—which make up the bulk of Nigeria’s trade with the U.S.—have been exempted from the tariffs as of an April 2 announcement by Washington.
“Therefore, it’s the price effect—the oil price effect—that may affect Nigeria. And it is the job and responsibility of the economic management team of President Bola Ahmed Tinubu, amongst others, to look at the various scenarios that might play out,” Edun told journalists at the event.
“There’s global uncertainty at a huge level, so nobody knows exactly what will happen—the announcement that has been made. We’re not sure what will be delayed, what will be reversed, or what will be implemented.
“So, it is not an announcement that the budget is being reviewed. It’s an announcement that it is our responsibility to look at the various scenarios and options and advise government accordingly.”
He further revealed that the Federal Government is considering budget adjustments, prioritisation of expenditure, and exploring innovative non-debt financing strategies to manage potential fiscal shocks.
“In the last three years (2022–2024), Nigeria has maintained a trade surplus with the United States. Nigeria’s exports to the U.S. were N1.8 trillion, N2.6 trillion, and N5.5 trillion, respectively. Oil and mineral exports accounted for 92 per cent of this, amounting to N5.08 trillion, while non-oil exports made up just N0.44 trillion,” Edun said.
“Consequently, the tariff effect on exports is negligible if we sustain our oil and mineral export volumes,” he added. “The adverse effect on Nigeria will be through oil price plunge. 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.”
Turning to the broader theme of the MOFI event—“Ensuring Value Creation in State-Owned Enterprises Through Better Corporate Governance”—Edun emphasised the importance of sound corporate governance in navigating global economic uncertainties.
“The interplay between economic performance and corporate governance is neither incidental nor superficial. Instead, it constitutes the bedrock for establishing sustainable development, investors’ confidence, and institutional integrity,” he said.
He pointed out that State-Owned Enterprises (SOEs) hold a vital position in the economy, with significant influence across sectors such as energy, infrastructure, telecommunications, and financial services.
“However, their potential to drive economic expansion, job creation, and industrial growth has often been constrained by inefficiencies, poor financial stewardship, and, in some instances, governance deficiencies,” Edun noted.
