LCCI urges diplomatic push as U.S. tariffs threaten export revenue
The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to step up diplomatic engagement through the appropriate ministries to address the recent imposition of tariffs by the United States on Nigerian goods.
Speaking during a press briefing on Thursday in Lagos at the chamber’s quarterly review of the economy, LCCI President, Mr Gabriel Idahosa, stressed the need for Nigeria to seek clear explanations for the tariffs and explore avenues for their reversal or renegotiation, particularly in light of Nigeria’s ban on 25 U.S. import items.
Idahosa pointed out that the ongoing escalation of global tariff tensions, particularly between the U.S. and other economies, could soon lead to higher inflation rates in several countries affected by the trade measures.
He noted that although oil and gas exports from Nigeria to the U.S. are currently exempt from the 14 per cent tariff imposed on the country, the broader economic consequences could still be significant.
“The exclusion of oil and gas from the tariffs means the immediate impact may be somewhat contained, but we are already seeing signs of a downturn in oil prices, which threatens Nigeria’s foreign exchange earnings from crude exports,” he said.
Referring to Nigeria’s projected non-oil, non-energy exports to the U.S., valued at N323.96 billion in 2024, Idahosa said the potential disruption posed by the tariffs demanded a calculated and proactive response from the government.
“It is crucial that Nigeria reduces its overreliance on a limited number of trade partners by expanding bilateral agreements with emerging markets in Asia, Latin America, and within Africa,” he stated.
“Intra-African trade, particularly under the African Continental Free Trade Area (AfCFTA), should be pursued with greater vigour,” he added.
The LCCI president also urged the Federal Government to strengthen incentives for local production and value addition, especially in the agriculture, mining, and manufacturing sectors.
He argued that the practice of exporting raw commodities must be replaced by the export of processed Nigerian goods, which command higher value on the global market.
Idahosa further recommended an urgent overhaul of Nigeria’s national trade policy to bring it in line with new global economic realities.
“Our trade, taxation, and customs frameworks must be modernised in accordance with World Trade Organisation (WTO) standards in order to protect and advance Nigeria’s interests,” he said.
Turning to domestic economic concerns, Idahosa observed that despite the recent rebasing of the Consumer Price Index (CPI), inflation remained persistently high.
He called on fiscal and monetary authorities to step up their efforts to curb inflation using a coordinated blend of financial, trade, and economic policies.
With global oil markets facing growing uncertainty and price volatility, he said it was vital for the government to prepare a fiscal strategy that could cushion any shortfalls in expected budgetary revenue.
He also highlighted the need for the government to confront the growing national debt and tackle fiscal recklessness, particularly in terms of public spending.
Adding his voice, LCCI Vice President, Mr Ladi Smith, appealed to the government to make greater efforts to secure Nigeria’s agricultural zones.
He emphasised that ensuring the safety of areas surrounding the country’s key food production regions was essential not only for national food security but also for helping to reduce inflation and improve living conditions for the broader population.
