Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has downplayed the potential impact of the recent 14 per cent tariff imposed by the United States on Nigerian exports, asserting that it will have a “negligible effect” on the nation’s economy.
Speaking at the inaugural Corporate Governance Forum organized by the Ministry of Finance Incorporated in Abuja, Edun acknowledged the gravity of escalating global tariff conflicts but emphasized Nigeria’s relative insulation.
“Nigeria’s exports to the US was N1.8tn, N2.6tn and N5.5tn in 2022-2024, respectively. Fortunately, oil and mineral exports accounted for 92 per cent, implying oil and mineral exports amounted to N5.08tn in value, while non-oil was just N0.44 trillion. Consequently, the tariff effect on exports is negligible if we sustain our oil and minerals export volume,” he explained, noting that oil and mineral exports, Nigeria’s primary exports to the US, are excluded from the tariff.
He also pointed out the 14% tariff is relatively low compared to other nations. “He highlighted the comparatively moderate 14 per cent tariff as favourable when placed alongside Vietnam’s 46 per cent and China’s 34 per cent tariffs.”
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Despite this, Edun confirmed that “the government’s economic management team is closely monitoring the global situation.” He added, “We are going back to the drawing board to look at our budget all over again, because we have to see what changes have been made in the assumptions that underlay the production of that budget and the reality over the first quarter and even projected into the future.”
Edun also spoke on the broader state of the Nigerian economy. He praised the stabilization achieved under President Bola Tinubu’s administration and outlined the government’s shift from debt to equity and revenue generation.
“He said Nigeria had progressively transitioned from concessional funding, bilateral loans, and Eurobonds to prioritising equity investments and public-private partnerships. This shift aims to optimise state-owned enterprises and leverage private sector capital and expertise.”
He cited successful initiatives like the Benin-Asaba highway concession as examples of this strategy. “Specifically, Edun cited successful initiatives like the Highway Development and Management Initiative, which recently saw private sector involvement in the Benin-Asaba highway concession, significantly reducing transport time from four hours to one hour.”
On corporate governance, Edun stressed its importance, especially for entities like NNPC. “On corporate governance, Edun stressed its critical importance, especially with entities such as the Nigerian National Petroleum Company preparing for a potential Initial Public Offering.” He also highlighted the MOFI Corporate Governance Scorecard.
Minister of Power, Adebayo Adelabu, echoed the importance of corporate governance reforms.
“The Minister of Power, Adebayo Adelabu, described the ongoing corporate governance reforms as critical and urgently needed for Nigeria’s State-Owned Enterprises, especially within the power sector.” He pointed to the unbundling of TCN as a positive step.
“According to him, the unbundling of the Transmission Company of Nigeria into the Nigeria Independent System Operator and the Transmission Service Provider was a significant structural reform aimed at improving transparency, clarity, and value creation.”
Dr. Shamsuddeen Usman, Chairman of MOFI, discussed the forum’s purpose. “The Chairman, Board of Directors, Ministry of Finance Incorporated, Dr Shamsuddeen Usman, said the forum was one of the rare public appearances the organisation makes to demonstrate its commitment to institutionalising results-based corporate governance in Nigeria’s public sector.” He explained the scorecard and assessment process.
Dr. Armstrong Takang, Managing Director and CEO of MOFI, highlighted the challenges of poor governance in state-owned enterprises. “Dr Armstrong Takang, lamented the poor governance records among Nigerian state-owned enterprises, disclosing that out of 52 companies in MOFI’s portfolio, only 20 had published audited financial accounts over the past three years.”
He also noted the impact of delayed decisions. “Takang highlighted that governance failures were often due not only to ineffective decisions but also to delayed or avoided decision-making. He pointed out that such inaction significantly impacted economic growth and hindered Nigeria’s ambition to become a $1tn economy in the near future.”
He stated that current events provide opportunity for improvement of corporate governance structures.
© Ripples Nigeria
