Wale Edun, Nigeria’s Finance Minister and Coordinating Minister of the Economy, has said that the country’s economy remains resilient despite rising global concerns following new U.S. import tariffs. This comes as fears of a global recession increase, with markets experiencing significant disruptions.
U.S. tariff policy shakes global markets
The global economic landscape has shifted after the U.S. imposed sweeping tariffs on imports. These include a 10% general rate and up to 34% on goods from China. The announcement triggered a widespread market reaction, with sell-offs, capital flight, and weakening investor confidence observed across key economies.
Stock markets have responded sharply. On Wall Street, prices dipped as investors pulled back. In Africa, the Nigerian Exchange Limited (NGX) also felt the pressure, despite reports of strong corporate earnings from top banks and major firms.
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Nigerian market sees decline
The Nigerian capital market recorded a major sell-off, losing over ₦100 billion in a week. This reflects broader investor concerns over the global economy rather than performance of listed firms.
Key indicators show the extent of the decline:
- Total number of trades dropped by 30.9%
- Volume of shares traded fell by 84.3% to 1.18 billion units
- Value of transactions declined by 92.8% to ₦28.87 billion
- Market capitalisation decreased by ₦600 billion
- The All-Share Index fell by over 1,200 points
These figures reflect a cautious approach by both domestic and foreign investors, responding to increasing risks in the global market.
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Oil and minerals exempt from U.S. tariffs
Speaking at the Corporate Governance Forum in Abuja, Edun provided a message of stability. He said Nigeria’s major exports — crude oil and solid minerals — are not affected by the new U.S. tariffs. These sectors represent a large portion of the country’s export earnings.
“The recent 14% U.S. tariff on Nigerian exports will have a ‘minimal impact,’” Edun said, pointing to exemptions that protect critical revenue sources. In contrast, countries like Vietnam and China face steeper tariffs of 46% and 34%, respectively.
Government monitoring global developments
While offering reassurance, Edun acknowledged the risks ahead. He said the Finance Ministry is closely watching global economic trends and is prepared to respond if capital outflows affect the naira or the broader economy.
He stressed the importance of economic management in this period and said that exporters and businesses must continue to diversify and build resilience.
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SMEs urged to stay focused on diversification
Small and medium-sized businesses, which could be more vulnerable to international shifts, are being encouraged to focus on growth opportunities. Edun noted that Nigeria’s outlook remains stable as long as key export sectors hold firm.
The Minister said, “as long as oil and mineral exports remain steady, and diversification efforts continue, Nigeria could ride out this global storm better than many peers.”
