The Federal Government has established a subcommittee to evaluate the direct and indirect effects of the recent U.S. trade tariffs on Nigeria’s economy.
This move was confirmed in a statement released Friday by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance. According to the statement, the decision followed a meeting of the Economic Management Team (EMT)—chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun—to discuss the economic and fiscal implications of the U.S. measures.
Key government ministries and economic agencies attended the meeting, which focused on understanding how the U.S. tariffs might affect Nigeria, even though the country’s main export, crude oil, has not been directly targeted. However, the EMT raised concern over a drop in global oil prices, which could impact Nigeria’s revenue.
To guide policy decisions with solid evidence, the EMT has created a subcommittee tasked with thoroughly analyzing the economic fallout from the new U.S. tariffs and global commodity price shifts. Members include representatives from the Federal Ministry of Finance, the Ministry of Budget and Economic Planning (including the Budget Office of the Federation), and the Central Bank of Nigeria.
Manga noted that the subcommittee has already held its inaugural meeting and is expected to present its findings to the EMT promptly.
“This step reflects the government’s commitment to proactive and informed economic policymaking,” Manga said, highlighting the potential risks Nigeria faces from shifting global market conditions.
Although U.S. tariffs do not currently target Nigerian crude oil, their introduction has contributed to a broader decline in oil prices, now below Nigeria’s fiscal breakeven point of $60 per barrel. Analysts warn that sustained low prices could widen Nigeria’s current account deficit and weaken the naira.
Adding to the concern, global financial firm JP Morgan recently flagged possible drops in foreign portfolio investments due to market uncertainties, underlining the urgency of Nigeria’s economic response.
The subcommittee’s findings will provide vital insights and recommendations to help shape Nigeria’s strategy for navigating ongoing global economic challenges.