The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has expressed fear that unless the Federal Government takes deliberate steps to increase Nigeria’s non-export earnings, the current global tariff war may lead to job losses, low foreign exchange inflow, and economic instability.
This was the position of the President of NACCIMA, Dele Oye, as the chairman at the Vanguard Economic Discourse 2025 with the theme, “Nigeria’s Economic Outlook 2025: Hardship and Pathways to Sustainable Recovery”, held last week in Lagos.
Among other things, Oye who is also the Chairman of the Organised Private Sector of Nigeria (OPSN), emphasized the need for a viable and affordable homegrown democracy.
His words: “In this pivotal moment, we must recognize and confront the significant challenges before us—challenges that have been magnified by the advent of America’s “America First” policy.
“This paradigm shift in global trade, driven by protectionism and tariffs, presents a unique and formidable array of obstacles for developing nations such as ours.
“The world we once knew, one characterized by cooperative, rules-based trading systems under the World Trade Organization, has given way to an environment fraught with uncertainty. This transformation not only disrupts global markets and supply chains but poses an acute threat to our competitive standing in international trade.
“The recent implementation of a 14% tariff on Nigerian exports to the United States directly jeopardizes what has historically been a critical market for our key goods, including crude oil, liquefied natural gas, and agricultural products. “The ripple effects of reduced demand could precipitate job losses, economic instability, and a decline in vital foreign exchange inflows, particularly for our non-oil sectors”.
“Indeed, the ramifications of current U.S. policies go beyond tariffs. We are witnessing a significant decrease in funding for initiatives that empower Africa’s burgeoning start-ups.
The $51 million cut from the United States Development Fund, which affects countries like Nigeria and Kenya, exemplifies the broader challenges we face. The grants previously allotted to our SMEs are critical for nurturing innovation and entrepreneurship within our local economies”.
In the face of these challenges, Oye said Nigeria must act decisively and strategically to reshape its economic destiny where adversity can give rise to opportunity.
He added, “We need a political structure that can withstand external pressures and remain resilient in the face of global shifts.”
Strategic imperatives
Giving a series of recommendations for building such a resilient economy he stated:
“We must deepen our engagement with the African Continental Free Trade Area (AfCFTA) to encourage intra-African trade and bolster regional supply chains. Together, we can create a more integrated and prosperous African market.
“It is imperative that we expand our trade partnerships beyond traditional markets, forging relationships with emerging economies such as China, India, and Brazil. Diversification is our shield against over-reliance.
“Strategic investment in our transport and logistics infrastructure is essential to improving market accessibility and attracting foreign direct investment, paving the way for growth.
“We need to promote and insulate our special economic zones from municipal agencies’ regulatory uncertainties, towards promoting their global competitiveness.
“We must nurture sectors like agriculture and technology by promoting value addition in our products, which will drive industrialization, create jobs, and multiply returns on our exports.
“One of our biggest problems is that we still export our raw materials
“It is not only about doubling exports but to increase local processing so that we can deepen technology transfer and most importantly, also create jobs
“Enhancing our regulatory frameworks and streamlining processes will render Nigeria a more appealing destination for investment.
“We should invest in our greatest asset—our people—by emphasizing vocational training and education to cultivate a skilled workforce ready to meet the demands of future industries.
“Nigeria should establish an environment that nurtures tech start-ups and promotes research to drive sustainable economic growth”.
The NACCIMA boss listed other strategic imperatives Nigeria should pursue in the race to socio-economic resilience including, “engagement in Global Security Dialogues; Sustainability and Ethical Practices; Strengthening Diplomatic Networks; maintenance of Law and Order; Predictability in Policy; and the promotion of home-grown industries in Nigeria.”
He added that by prioritizing local production and supporting small and medium-sized enterprises (SMEs), Nigeria can harness its abundant resources, stimulate job creation, and reduce reliance on imports.
Part of the strategic economic policies, he said, would also include encouraging investment in sectors such as agriculture, manufacturing, and technology will not only enhance domestic value chains but also fortify the economy against global market fluctuations.
To this end he explained that government policies that provide incentives for local entrepreneurs, improve access to financing, and invest in infrastructure will create a conducive environment for innovation and competitiveness. Ultimately, he added, “nurturing home-grown industries will contribute to a more self-sufficient economy, empower communities, and drive long-term prosperity for all Nigerians”.
Vanguard
