The Federal Government has constituted a subcommittee to evaluate the potential repercussions of the newly announced United States trade tariffs on Nigeria’s economy.
In a statement released on Friday by the Director of Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, it was disclosed that the Economic Management Team chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, met earlier in the week to assess the broader fiscal and economic impact of the US trade measures.
“The focus of the deliberation was the recent imposition of tariffs by the United States government and how these may affect Nigeria’s economic landscape,” Manga stated.
Although Nigeria’s leading export, crude oil, has not been directly affected by the tariffs, the EMT expressed concern over the concurrent drop in international oil prices.
The current market price has fallen below Nigeria’s fiscal breakeven threshold of approximately $60 per barrel, raising alarm over the country’s economic stability.
To develop an informed policy response, the EMT agreed to set up a dedicated subcommittee. This team will carry out a comprehensive assessment of the economic consequences of the US tariffs and the global shifts in commodity prices.
Members of the subcommittee include representatives from the Federal Ministry of Finance, the Ministry of Budget and Economic Planning—including the Budget Office of the Federation—and the Central Bank of Nigeria.
“The subcommittee has already held its inaugural session and is expected to deliver its report to the EMT promptly,” Manga noted.
“This move underscores the government’s commitment to evidence-based economic management and its determination to address international developments that could pose risks to the nation’s economy.”
Experts have raised concerns that continued low oil prices, compounded by global trade uncertainties, could lead to a deficit in Nigeria’s current account balance and further pressure the naira.
Financial analysts at JP Morgan also warned that the current economic climate could discourage foreign portfolio investments.
Manga concluded, “The establishment of this subcommittee reflects the Federal Government’s proactive stance in managing potential threats from international economic shifts and ensuring timely and strategic responses to protect Nigeria’s fiscal health.”
