Economist and financial analyst, Dr. Muda Yusuf has reacted to the 12.5 percent tariff imposed by the United States, under President Donald Trump, on imports from Nigeria.
In a statement issued at the weekend, Yusuf detailed the likely economic impact of the tariffs on Nigeria.
Recall that three days ago, the Office of the United States Trade Representative, USTR imposed a 12.5 percent import tariff on Nigeria and several other countries over their alleged failure to implement its forced labour rules.
Reacting, Yusuf, a former Director-General of the Lagos Chamber of Commerce and Industry, LCCI, outlined two reasons why the impact of the US tariffs is unlikely to be significant for the Nigerian economy.
He explained that Nigeria’s exports to the United States are heavily concentrated in crude oil, liquefied natural gas, and other petroleum products, which account for more than 80 percent of the country’s merchandise exports to the US.
Yusuf added that another reason the impact of the US tariffs may not be significant is that the United States is not Nigeria’s largest export market.
“From Nigeria’s perspective, however, the economic impact of the tariffs is unlikely to be significant.
“The first reason is that Nigeria’s exports to the United States are heavily concentrated in crude oil, liquefied natural gas and other petroleum products, which account for more than 80 percent of Nigeria’s merchandise exports to the U.S. These products have been exempted from the tariff measures, leaving the bulk of Nigeria’s exports unaffected.
“The United States is
