The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has said Nigeria is well-positioned to withstand emerging global trade disruptions, including the escalating tariff tensions triggered by recent United States policy shifts.
On April 2, U.S. President Donald Trump announced sweeping tariffs on all imports into the country, including those from Nigeria.
Speaking on Monday during the Corporate Governance Forum organised by the Ministry of Finance Incorporated (MOFI) in Abuja, Edun said that while oil and minerals are exempted from the new tariffs, the broader economic impact could come through declining oil prices.
He noted 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 the Nigeria Customs Service.
“Nigeria-US trade has been in surplus in the last three years (2022–2024). Consequently, the tariff effect on exports is negligible if we sustain our oil and minerals exports.
“The adverse effect on Nigeria will be through the 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, budget adjustment and prioritisation where possible, and also innovative non-debt financing strategies.”
Edun said Nigeria is pivoting its economic model toward private sector-led growth, equity-based financing, and strategic asset optimisation. While the government accounts for 10 per cent of GDP, the private sector contributes 90 per cent.
He credited President Bola Tinubu’s administration with stabilising macroeconomic indicators and laying a foundation for sustainable growth.
“Over the last 18 to 24 months, we’ve seen clear signs of stabilisation.
“Inflation is easing, fuel and food prices are coming down, and GDP growth remained steady at 3.84 per cent in Q4 2024.
“These outcomes have been achieved through a disciplined combination of monetary and fiscal policies,” he said.
According to him, Nigeria had already pivoted from a debt-dependent strategy to equity and private investment, even before the current global trade shifts.
He cited concessional and bilateral financing as examples of Nigeria’s prudent fiscal management.
Highlighting the Highway Development and Management Initiative (HDMI), Edun pointed to partnerships that have transferred major infrastructure projects, like the Benin-Asaba expressway, to the private sector, reducing travel time from four hours to one.
“These initiatives are saving costs and attracting private capital. We’ve identified nearly 1,000 kilometres of roads ready for private funding. That’s real transformation,” he said.
Edun said strong corporate governance is key to attracting investment into state-owned enterprises. He confirmed that the 2025 budget includes a provision for privatisation, which may expand depending on fiscal needs.
He added, “With a stable macroeconomic environment, a reform-focused government, and an increasingly attractive exchange rate, Nigeria is open for business. We invite global partners to invest and produce locally—our market is ready.”
He also acknowledged the role of development partners such as the World Bank and praised collaboration with the private sector.
Also, speaking at the event, the Minister of Power, Adebayo Adelabu, said corporate governance is no longer optional in the power sector.
He said that following the restructuring of the Transmission Company of Nigeria into the Nigeria Independent System Operator (NISO) and Transmission Service Provider (TSP), governance frameworks have been strengthened.
“Good corporate governance will ensure operational excellence, bolster investor confidence, and protect public interest,” Adelabu said.
A former World Bank Country Director for Nigeria and now a Regional Vice President, Ndiame Diop, said more needs to be done to improve transparency in state-owned enterprises.
He said, “To ensure federal revenue share is based on accurate financial reports, improving transparency is pivotal. Value created by reforms is only possible with good corporate governance, which requires real effort and adherence to best practices.”
