The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to intensify diplomatic efforts through its relevant ministries to address the United States (U.S.) tariff impositions on the country.
Mr Gabriel Idahosa, President, LCCI, gave the advice at a news conference on the chamber’s quarterly state of the economy on Thursday in Lagos.
Idahosa stated the importance of seeking clarity on the rationale for the tariffs and explore pathways for reversal or renegotiation with respect to Nigeria ban on 25 import items from the U.S..
He noted that with escalating tariff wars between the U.S. and the rest of the world, there may soon be higher inflation rates across many economies that were directly affected by the tariffs.
The LCCI president observed that with oil and gas purchases by the U.S. being exempted from the 14 per cent tariff on Nigeria, the economy might record limited impact from the tariffs.
He, however, stated that the tariffs had driven oil prices down, indicating a challenge to Nigeria’s foreign exchange earnings from crude.
“With Trump’s tariffs threatening Nigeria’s N323.96 billion in 2024 non-oil, non-energy exports to the U.S., we believe a strategic, measured, and proactive response from the Nigerian government is imperative.
“Nigeria must reduce overdependence on a few trade partners by expanding bilateral trade agreements with emerging economies in Asia, Latin America, and Africa.
“Intra-African trade under the African Continental Free Trade Area (AfCFTA) should be aggressively promoted,” he said.
Idahosa also urged the Federal Government to incentivise local production and value addition in agriculture, mining, and manufacturing.
He stated that exporting commodities in their primary state must give way to processed finished Nigerian goods that commanded higher global value.
He also recommended an urgent review of Nigeria’s national trade policy to reflect emerging global realities.
According to him, the country’s trade, tax, and customs regimes must be modernised to align with World Trade Organisation (WTO) rules and safeguard Nigerian interests.
Addressing inflation, Idahosa noted that in spite of the rebasing of the Consumer Price Index (CPI), inflation remained significantly high.
He urged government and monetary authorities to intensify efforts at controlling inflation through a mix of fiscal, monetary and trade policies.
He said that with the global oil market facing multiple uncertainties and prices trending downwards, government must develop a fiscal response to address potential revenue gaps in the budget.
Idahosa added that government must address the trajectory of the country’s debt and fiscal indiscipline, particularly on the expenditure side.
Mr Ladi Smith, Vice president, LCCI, urged government on greater attempts to protect the various agricultural zones in the country.
He stressed that government should be encouraged to make greater security in areas that surround the nation’s food baskets to further drive down inflation and impact the populace.
