By Adedapo Adesanya

The Manufacturers Association of Nigeria (MAN) has said the US imposition of 14 per cent tariff on imported products may have a significant impact on Nigeria’s trade and industrial landscape.

The Director-General of MAN, Mr Segun Ajayi-Kadir, in a statement noted that the US remained one of Nigeria’s most significant trade partners, accounting for approximately 7 per cent of its non-oil exports.

President Donald Trump had earlier slammed a reciprocal tariff on all trading partners with the US with Nigeria getting a 14 per cent share. Although, it recently made a pause to the tariffs for a 90-day period, the possible impact remains.

Mr Ajayi-Kadir said the new tariff regime directly threatened this trade dynamic, particularly as Nigeria projected an ambitious N55 trillion budget and was experiencing a downward trend in global crude oil prices.

According to him, the hike has come at a vulnerable moment when the country is just recovering from the impact of the government’s policy mix that has had negative effects on the manufacturing sector.

“Nigeria’s manufacturing sector, which contributed 8.64 per cent to the country’s Gross Domestic Product (GDP) in 2024, is one of the most predisposed sectors of the economy when it comes to trade policy shifts.

“The imposition of a 14 percent tariff on Nigerian exports significantly undermines the competitiveness of locally manufactured goods in the US market.

“Manufacturers who are exporters in agro-processing, chemicals and pharmaceutical, basic metal, iron and steel, non-metallic mineral products and other light industrial manufacturing rely heavily on the U.S. for market access.

“With increased costs for American buyers due to the tariffs, demand for Nigerian products is expected to decline,” he noted.

Mr Ajayi-Kadir stated that in addition to revenue losses, the new tariffs posed a significant disincentive to firms investing in value-added manufacturing.

He noted that over the past decade, manufacturers had made concerted and strategic efforts to support the country’s transition from exporting raw commodities to semi-processed and finished goods.

“However, higher market-entry costs because of higher tariff on Nigerian products will reduce the profitability of such investments, making it more attractive for firms to revert to exporting raw materials.

“This is counterproductive to Nigeria’s industrialisation agenda and compromises the long-term goal of achieving export diversification under platforms such as the African Continental Free Trade Agreement (AfCFTA),” he said.

The MAN DG added that the implications of the tariff imposition on employment in the manufacturing sector were dire.

He noted that as export revenues fall, many companies may reduce their production scale or downsize their workforce to cut costs.

He added that beyond the manufacturing sector, the Nigerian economy was not insulated from the effects of the U.S. tariff decision with its direct impact on Nigeria’s trade balance.

Mr Ajayi-Kadir said with the country already grappling with a fragile external sector, any significant reduction in exports to the U.S. would erode the current trade surplus, potentially pushing the balance into deficit.

He expressed worry about potential pressure on Nigeria to reciprocate by reducing its own tariffs on U.S. goods.

He noted that while the U.S. may frame this as a step toward “fair trade,” the reality was that lowering tariffs on U.S. imports could flood the Nigerian market with subsidised goods, thereby undermining local producers.

“Nigeria has, in recent years, made commendable strides toward achieving self-sufficiency in several manufacturing segments and diversifying away from oil.

“However, succumbing to external pressures to liberalise trade prematurely would reverse these gains.

“Furthermore, the absence of institutional capacity to engage in sophisticated trade negotiations places Nigeria in a vulnerable position.

“While countries with advanced legal and economic institutions may be able to negotiate favourable terms, Nigeria is at a disadvantage due to capacity constraints,” he said.

By Adedapo Adesanya

Nigeria issued 47 Licenses to Establish (LTE) and 30 Licenses to Construct (LTC) refineries in the last year as it seeks to boost oil production in the country.

The move, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), marks a significant step towards enhancing Nigeria’s refining capacity and boosting petroleum products availability.

The chief executive of NMDPRA, Mr Farouk Ahmed, during the sixth Meet-the-Press briefing in Abuja on Tuesday, said the 47 issued licenses have a combined refining capacity of nearly three million barrels per day.

Detailing the breakdown of the licenses, Mr Ahmed stated: “We have issued 47 LTE translating to 1.75 million barrels per day and 30 LTC translating to 1.23 million barrels per day. Currently, only four plants hold LTC with a steady output of 27,000 barrels per day.”

Giving a further breakdown, he said the LTC projects included five which were at the commissioning or construction stage, including the Dangote Petroleum Refinery with a capacity of 650,000 barrels per day while other smaller projects include; AIPCC Energy’s 30,000 barrels per day plant and Waltersmith’s second train with a capacity of 5,000 barrels per day.

Mr Ahmed also highlighted the current state of refining operations in Nigeria, saying six licensed private refineries and four public ones are producing a total of 1.12 million barrels per day.

Other private plants contribute 679,500 barrels per day, led by Dangote’s single-train plant with a refining capacity of 650,000 barrels per day.

Other modular refineries include; Aradel (11,000 barrels per day), OPAC (10,000 barrels per day), Waltersmith (5,000 barrels per day), Duport Midstream Limited (2,500 barrels per day), and Edo Refining and Petrochemicals Company Limited (1,000 barrels per day).

He explained further that publicly owned facilities operated by the Nigerian National Petroleum Company Limited add another 445,000 barrels per day from the refurbished plants in Port Harcourt (150,000 barrels per day), Warri (125,000 barrels per day), Kaduna (110,000 barrels per day), and the old Port Harcourt plant (60,000 barrels per day).

“These developments underline our commitment to reducing dependency on imported refined products.”

He added that ongoing licensing efforts aimed at expanding domestic refining capacity were ongoing to further support economic growth through job creation and energy security.

The NMDPRA’s recent licensing activities also include approvals for modular refineries in Edo, Delta, and Abia states, expected to add an additional 140,000 barrels per day upon completion.

By Modupe Gbadeyanka

The need to serve Africans living in the United Kingdom with easy, fast, and reliable remittances from to Nigeria has inspired Moniepoint to introduce a remittance product known as MonieWorld.

The company introduced this product after it got the funding support of a global tech giant, Google, as well as Verod Capital and Lightrock in October 2024, and from Visa in January 2025.

MonieWorld will complete transactions in seconds, with exchange rates adjusted throughout the day, and no transaction fees for customers.

The MonieWorld application, available via the App Store and Google Play, allows UK customers to send money to Nigeria seamlessly – making financial transactions easier.

“The launch of MonieWorld is an exciting step on our journey to create financial happiness and support Africa’s entrepreneurial potential.

“It is a natural addition to our existing suite of solutions and will be hugely valuable for customers. It makes it easy, quick and reliable to send remittances – a critical source of funds for Nigeria’s economy.

“The African diaspora needs a one-stop solution to better meet its financial services needs – and improve on the current fragmented market.

“I am thrilled Moniepoint is tackling this challenge and can’t wait to announce future additions to the MonieWorld solution.

“Our expectation is that MonieWorld will enhance financial access for everyone involved, boosting UK-Nigeria bilateral trade and benefiting the global economy,” the chief executive of Moniepoint Incorporated, Mr Tosin Eniolorunda, stated.

Remittances are a material contributor to Nigeria’s economy. They supplement foreign direct investment, while supporting household consumption and foreign exchange liquidity.

Global remittances to Nigeria rose by 9 per cent in 2024 to $20.98 billion, with the UK diaspora contributing about 50 per cent, helping to grow businesses, support families, and drive economic development.

Moniepoint is the leading financial platform for Nigeria’s vast network of SME businesses and their consumers with its integrated suite of services – digital payments, bank accounts, credit, and management tools.

The platform processes over a billion transactions monthly, with total payments volume of over $22 billion, serving 10 million businesses and individuals across Nigeria, driving financial inclusion efforts.