Nigeria, like many other countries, has been slammed with sweeping tariffs that have sent investors scampering for safe havens and plunged emerging and frontier markets’ currencies to record lows. In this interview with BusinessDay’s Wasiu Alli, Sheriff Balogun, national president of the Nigerian-American Chamber of Commerce (NACC), offers insights on what needs to be done to take cover from President Donald Trump’s tariffs and the plethora of opportunities the African Growth and Opportunity Act (AGOA) holds for entrepreneurs.
The United States recently imposed a blanket 14% tariff on goods exported from Nigeria, a move that undercuts the duty-free access Nigeria enjoyed under AGOA. What immediate impact do you foresee this having on Nigerian exports and businesses?
It’s certainly a serious development. Overnight, Nigerian exporters lost the free pass they had under AGOA. Now they face a hefty 14 percent tax on their goods entering the US. That might sound small on paper, but in the world of trade it’s huge – it can be the difference between a product that’s competitively priced and one that’s just too expensive for the buyer. Immediately, this means Nigerian goods, from textiles to agricultural produce, have suddenly become more costly for American importers.
A small fashion business in Lagos that ships to US boutiques, for example, might see buyers pull back orders because their dresses are now 14 percent pricier than similar garments from elsewhere. Even our big export, oil, isn’t spared – with an added tariff, US refiners may look to other countries for a cheaper supply.
Broadly speaking, the United States is a significant market for us – roughly 10 percent of Nigeria’s exports go to the US. So this tariff, if it sticks, could put a real dent in our export earnings. We’ll likely see lower volumes of Nigerian products heading to America as buyers adjust. Beyond the numbers, though, the psychological impact is also important: it sends an alarming signal to our businesses. Many Nigerian exporters had banked on the US market’s openness; now they’re seeing that access narrowed. In the short term, some exporters will scramble to cut costs or divert shipments elsewhere to stay afloat. Others might put expansion plans on hold, given the uncertainty. In essence, this 14 percent tariff slams the brakes on some of the progress we’ve made in accessing the US market, and our exporters are feeling that shock right now.
On a broader scale, what do you see as the landmark effects of these tariffs on Nigeria’s economy as a whole? And is there a way out of this situation?
It’s an inflection point for our economy, no doubt. We’ve never had such a direct trade shock from the US in recent memory, and it highlights some fault lines in our economic structure. In the immediate term, one big concern is our oil revenue. The US buys a portion of our crude, and if that demand falls because of the tariff, our foreign earnings from oil could dip.
Less dollar income means added pressure on our currency, the naira, and by extension on prices – in other words, we could see a potential uptick in inflation for Nigerians. We might also feel ripple effects like higher costs for certain imported goods. Think about wheat or machinery that we import from the US; if a trade war escalates or Nigeria responds in kind, those items could become more expensive here, squeezing consumers and businesses alike. Beyond that, there’s the confidence factor: global investors get skittish when major economies tussle. If uncertainty persists, some investors might hold off on projects in Nigeria, worrying about the stability of our access to international markets.
But is there a way out? Absolutely. First, through diplomacy and dialogue. I strongly believe this isn’t a permanent state of affairs – it can be resolved. Nigeria’s government should actively engage with Washington on this. Perhaps there’s room for negotiation or a compromise to roll back the tariff, especially if we can demonstrate that it harms both countries’ interests.
We’ve already heard that discussions may happen at the WTO level; that’s a path to pursue vigorously. From our side at NACC, we’re leveraging our relationships with American business partners to advocate for a reversal of these tariffs, highlighting that stifling trade is a lose-lose scenario.
Secondly, and just as importantly, this needs to be our wake-up call domestically. We’ve talked endlessly about diversifying our economy away from oil; now we have no choice but to act. Nigeria must strengthen other export streams so that a single policy change abroad doesn’t leave us reeling. That means supporting our farmers, manufacturers, and tech entrepreneurs to export more – not just to the US, but globally. If we widen our markets, improve the quality of our goods, and add more value here at home, we become less vulnerable.
In short, the way out of this crisis is two-fold: in the short run, engage and negotiate to mitigate the damage; in the long run, double down on transforming our export base and trade relationships. It’s a tough moment, but it might just be the push we needed to set our economy on a more resilient path.
Do these new tariffs signal the end of the AGOA for Nigeria and similar trade initiatives?
It definitely feels like AGOA’s foundation has been shaken. The whole point of AGOA was to give qualifying African exports tariff-free entry into the US; a blanket 14 percent tariff like this essentially pulls the rug out from under that, at least for Nigeria. In practical terms, as long as this tariff is in effect, Nigeria isn’t really enjoying the core benefit AGOA promised – we’re paying duties like everyone else, which is like AGOA being put on pause for us.
Now, does it spell the absolute end of AGOA? I wouldn’t sound the death knell just yet. Remember, AGOA is a law that’s still active until it comes up for renewal in September 2025. There’s a chance that cooler heads prevail and this tariff issue gets resolved, allowing AGOA to function as intended in the interim. Moreover, there’s historically been bipartisan support in the US for engaging with Africa on trade – AGOA has survived changing administrations before. So I’m hopeful that this current situation can be a temporary setback rather than a final full stop.
That said, we have to be realistic. If this tariff isn’t reversed soon or if AGOA isn’t renewed due to shifting U.S. priorities, we could be looking at the end of an era. Twenty-five years of duty-free access has been a cornerstone of our trade with America, and losing it would force everyone to adapt quickly. Nigeria might have to fall back on standard WTO (World Trade Organisation) terms with the US or seek a new trade agreement altogether.
We’d also have to lean more on other initiatives – for example, the African Continental Free Trade Area (AfCFTA) for regional trade – or pursue bilateral deals with other partners. In any case, while I’m optimistic that AGOA isn’t completely dead, it’s definitely on life support from Nigeria’s perspective. We need to prepare for a future where these preferential schemes might not be a given, even as we work hard to make sure they continue in some form.
How can Nigerian businesses better leverage AGOA (and similar programmes) to scale their exports, especially in non-oil sectors?
This is a question I’m really passionate about, because it hits at why AGOA hasn’t fulfilled its potential for Nigeria yet. The truth is, we’ve barely scratched the surface of AGOA’s opportunities beyond oil. Believe it or not, in the two decades since AGOA began, probably only a few dozen Nigerian companies – outside the oil industry – have consistently exported to the US under the program. That’s incredibly low for an economy of our size. We need to change that by empowering more businesses to take advantage of the platform.
Firstly, awareness is key. Many Nigerian entrepreneurs still don’t know that thousands of products – over 6,000 items – can enter the US duty-free under AGOA. We need robust outreach to inform businesses in agriculture, textiles, fashion, cosmetics, leather, and you name it, that they have a golden ticket if they meet the requirements. At NACC, we’ve been organising workshops and partnering with the Nigerian Export Promotion Council to spread the word in various states. When a small business owner in Kano or Aba realises, “Hey, I could be selling my shea butter or apparel in the US without tariffs,” that’s a lightbulb moment.
Secondly, knowledge and quality. Leveraging AGOA isn’t just about knowing the opportunity; it’s about meeting the standards of the US market. Our businesses have to up their game in product quality, packaging, and certifications. If you’re exporting food items, you must meet FDA standards; if it’s clothing or crafts, they must satisfy consumer safety and quality expectations.
We need to invest in training local producers on these standards and perhaps create more facilities (like testing labs and quality assurance centres) to help them get certified at home. I often say that getting one foot in the American market can open huge doors – but that first step requires preparation and consistency. We’re working on that, from helping farmers get organic certifications to training fashion SMEs on sizing and labelling for U.S. retailers.
Thirdly, we should encourage more value addition. Traditionally, we export raw commodities – cocoa beans instead of chocolate, unprocessed leather instead of finished shoes. Nigerian businesses can capture much more value by processing these goods at home and then exporting. AGOA gave them a price advantage (at least before this new tariff), so if a Nigerian company can offer a finished product duty-free, that’s a big competitive edge.
We’ve seen some success stories: a Nigerian shea butter co-operative that found shelf space in American stores or a fashion brand from Lagos selling in New York. These examples show it’s possible, and we need to multiply them. It might mean investing in better processing equipment or packaging, but the payoff is worth it.
During your presidency, the world has seen significant disruptions – from a pandemic to supply chain crises and global tensions. What has been your strategy for facilitating trade amid these global disruptions?
Leading the Chamber during global turmoil has been a test of adaptability and resilience – but it’s one I’ve embraced. My strategy has been to keep the wheels of communication and collaboration turning, no matter what the world throws at us. Take the pandemic, for instance. When COVID-19 hit and everything slowed down or went virtual, we at NACC quickly pivoted to digital platforms.
We organised virtual trade missions and B2B matchmaking sessions over Zoom, connecting Nigerian suppliers with U.S. buyers at a time when nobody could meet in person. I remember hosting a virtual roundtable in the thick of the pandemic with agro-exporters and U.S. food distributors. We helped iron out supply delays and even found alternative shipping routes when the usual ones were blocked. Despite the lockdowns, deals were being made from people’s living rooms. The key was to not let the disruption sever relationships; instead, we found new ways to sustain them.
Another part of the strategy has been emphasising diversification and flexibility. Global disruptions like the Ukraine war or the worldwide shipping container shortages taught businesses everywhere a lesson: you need Plan B and Plan C. Under my leadership, the Chamber has been actively advising members to diversify their supply chains and customer bases.
For example, if a Nigerian manufacturer was sourcing certain inputs from one country and that source shut down, we helped them link up with alternate suppliers – sometimes even encouraging local sourcing if possible. Conversely, when U.S. companies started looking beyond their usual suppliers (due to trade tensions or cost issues), we made sure Nigeria was on their radar. I’ve often said that every disruption carries the seed of an opportunity. When some international suppliers couldn’t deliver, Nigerian producers stepped up to fill the gaps, and we facilitated many of those introductions.
We also doubled down on information-sharing. In volatile times, businesses crave reliable information. So we sent out regular briefings and held webinars on issues like new U.S. regulations, handling port congestion, or changes in Nigeria’s foreign exchange policy – anything that could impact bilateral trade. By keeping our members informed in real-time, we helped them navigate the storm rather than be caught off guard by it.
Finally, I believe in close collaboration with policymakers during crises. Throughout the global disruptions of recent years, I maintained open lines with officials on both sides.
Global economic uncertainty is the new normal. How do you see this affecting Nigeria’s investment climate, and what role does NACC play in that context?
Global uncertainty is a double-edged sword for an investment destination like Nigeria. On one hand, when there’s turmoil – a looming recession, financial market jitters, geopolitical tensions – investors often get more conservative. They pull back, hold onto their capital, or stick to markets they perceive as “safe”. For Nigeria, that means some foreign investors who were considering projects might hit the pause button.
We’ve seen it happen: multinationals delay decisions because they’re unsure how global events (say, inflation in the US or a conflict affecting commodity prices) will pan out. Furthermore, when interest rates rise in the US, investing in emerging markets can seem less attractive since investors can get decent returns at lower risk back home. So yes, global uncertainty can dampen the appetite for Nigerian investments in the short term.
But here’s the other side of that sword: uncertainty elsewhere can make people look anew at opportunities here. If Europe is stagnant and parts of Asia are tense, Africa – with Nigeria at the forefront – starts to look like a diversification play for global businesses. We have a giant market and a lot of untapped potential. I’ve had conversations with American investors who told me, “Our usual playbook isn’t working; we’re looking more seriously at Africa now.” In a strange way, the turbulence worldwide has nudged some investors to broaden their horizons instead of putting all their eggs in one basket.
What policy recommendations would you put forward to encourage Nigeria’s non-oil exports?
I’ve been advocating this for a long time: Nigeria needs to create an environment where exporting non-oil products is not an uphill battle but a smooth ride. First and foremost, we have to fix our infrastructure bottlenecks. It’s almost a cliché, but it’s true – if our roads, ports, and power supply aren’t efficient, our exporters can’t compete.
Imagine a cashew or sesame farmer trying to ship goods overseas: if it takes weeks to get the product out of Apapa port, or if half the produce spoils because of power outages in storage, we lose our edge before the product even leaves the country. So, investing in better ports (with modern equipment and less congestion), providing cold storage and warehousing facilities, improving highways and rail links from inland production areas to the ports, and ensuring reliable electricity – these are foundational steps. They will pay off in spades for non-oil exports.
Next, we should provide concrete incentives for exporters. One idea is to fully reinstate and fund export-promotion programmes like the Export Expansion Grant – and ensure they’re paid out reliably. In the past, exporters were promised rebates to cushion their costs, but if those don’t materialise or are delayed by years, it discourages everyone. The government could also consider tax breaks or duty drawbacks on imported inputs that go into export products – basically make it cheaper to produce for export.
And importantly, simplify the paperwork. If an exporter has to fill 10 forms and visit 5 different agencies to get an export licence or clear a shipment, that’s 9 forms too many. We need a one-stop, digital export clearance system where approvals are fast and transparent. Some progress has been made on this, but we can do more – perhaps designate special export processing zones or “green lanes” where credible exporters get priority processing with minimal red tape.
Access to finance is another big one. Many non-oil exporters are small or medium businesses that struggle to get affordable loans to scale up production or improve their facilities. I would recommend expanding targeted credit schemes through banks or through our development finance institutions for export-orientated businesses.
Perhaps even create a dedicated export fund that offers low-interest loans to, say, a textile manufacturer who needs new machinery for a US order, or an agro-processor who needs working capital to buy raw material for an overseas contract. If we can de-risk these loans (through guarantees or insurance), banks will be more willing to lend to the export sector.
Quality control and standards are crucial too. Policies that support establishing quality certification centres and laboratories across Nigeria would help our products meet international standards more easily. The government can partner with the private sector or friendly nations to set up, for example, testing labs for agricultural products in major farming belts or training centres for exporters on international standards compliance. That way, a small business in Kano or Aba can get an internationally recognised certificate for their product without jumping through impossible hoops.
Lastly, we need to aggressively pursue market access abroad. That means our government should be very active diplomatically in securing and maintaining trade agreements or understandings that benefit our exporters. Renewing AGOA (or whatever replaces it) is one piece, but also looking beyond the US: leveraging the AfCFTA for regional exports, negotiating better terms with the EU (like reviving parts of the EPA talks) or other markets for key products. If Nigerian businesses know the government has opened a door for them in a market – say, removed a quota or negotiated lower tariffs for our textiles or cashews somewhere – they will walk through it. So, in summary: invest in trade infrastructure, reward and incentivise exporters, cut the red tape, facilitate export financing, ensure high standards, and open new market doors. Do all that, and I believe our non-oil exports will thrive.
What is your vision for the Nigerian-American Chamber of Commerce over the next three years? What strategic priorities are you focusing on during your tenure?
When I think about the next three years for the Chamber, I see an organisation that’s not just reacting to events but proactively shaping the Nigeria–U.S. economic relationship in bold ways. My vision is for NACC to be the go-to platform that any Nigerian business with international ambitions – or any American entity eyeing Nigeria – turns to first. I want people to say, “Talk to NACC; they’ll make it happen.” To get there, we’ve laid out a strategic roadmap with a few key pillars.
One major priority is empowering our SMEs for global trade. We have so many talented small and midsize businesses in Nigeria, and I want to equip them to reach the U.S. market. In practical terms, that means training and capacity-building. We’ve kicked off intensive training programmes on everything from U.S. product standards to how to market on e-commerce platforms abroad. I envision that within three years, hundreds of Nigerian SMEs will have gone through our “export accelerator” workshops – and many of them will be successfully exporting to the US. If a small fashion designer in Aba or a spice producer in Kano dreams of selling abroad, NACC will mentor them from idea to shipment. I want to see those success stories multiply, because that grassroots export growth is what truly diversifies our trade.
Another priority is what I call “from raw to refined”. Essentially, we want to push for more value addition in what Nigeria sells. To do that, we’re setting up an Export Focus Group within the Chamber dedicated to identifying high-potential products where Nigeria can move up the value chain. Part of this involves mapping Nigeria’s strengths region by region. Our country is so diverse – one state grows tonnes of ginger, another has a tradition of leatherwork, and another is rich in solid minerals.
We’re creating a sort of heat map of exportable products across Nigeria, and for each one we’ll develop a strategy to help it break into the U.S. market. Three years from now, I’d love to point to a map of Nigeria and say, These five regions each developed a new major export to the U.S. under my watch – be it a branded Nigerian cocoa chocolate bar in U.S. grocery stores, Delta State’s rubber being used in American manufacturing, or Nollywood content (our films) making waves on U.S. streaming platforms. It’s about diversifying the portfolio beyond oil in very tangible ways.
Financing is another piece of the puzzle. Even with knowledge and markets, businesses can’t grow without capital. So, a strategic priority for us is to connect our members to financing opportunities. We’re forging partnerships with banks and even international funds to unlock more credit for trade and investment. For example, we’ve been in talks with NEXIM Bank to create a special financing window for Chamber members who have export orders – basically a facility to give them the cash to produce and ship while they wait for payment. Under my tenure, I’d like to see the Chamber facilitate a significant amount of export financing. It could be through advocacy (ensuring government funding schemes reach the right people) or through creative programmes (maybe a chamber-backed crowdfunding or guarantee scheme for SMEs). When I look back after three years, I want to say we helped X number of companies secure the financing they needed to go global.
Internally, enhancing member engagement and expanding our network are high on my agenda. We just celebrated our 65th anniversary, which was a moment to honour the past but also to look forward. The Chamber has traditionally been Lagos-centric (understandably, since Lagos is the commercial hub), but Nigeria is big and opportunities abound nationwide. We’re working on expanding our chapter presence. In fact, we plan to open more chapters in the north and east of Nigeria so businesses there can more easily participate in NACC activities. Alongside physical expansion, we’re boosting our digital presence – creating an online members’ portal where someone in Enugu can attend a webinar with U.S. buyers or a member in Texas can network with suppliers in Kano.
In three years, if we hit our marks, I believe we’ll see a tangible impact: a notable increase in non-oil exports from Nigeria to the U.S., more U.S. companies establishing a presence in Nigeria, and a Chamber that’s even more influential and indispensable than it is today. Ultimately, the vision is about unlocking opportunities – for Nigerian businesses to grow globally and for U.S. investors to succeed in Nigeria – and doing so with a spirit of partnership and trust. I want, at the end of my tenure, for people to say the Chamber didn’t just talk; it delivered. That it humanised trade and investment – made it accessible and beneficial for the everyday businessperson, while strengthening the big-picture economic ties between our two countries. That’s the legacy I’m working towards.
