Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has downplayed the impact of the recent 14% tariff imposed by the United States on Nigerian exports, stating that it poses minimal threat to the country’s economy due to the exemption of oil and mineral exports.
Speaking at the inaugural Corporate Governance Forum hosted by the Ministry of Finance Incorporated in Abuja on Monday, Edun acknowledged growing global trade tensions but reassured stakeholders of Nigeria’s relative immunity.
“The new tariff will have a negligible effect because oil and minerals—which form the bulk of our exports to the US—are excluded,” Edun said. “Our exports to the US stood at N1.8 trillion, N2.6 trillion, and N5.5 trillion from 2022 to 2024, with 92% of that comprising oil and mineral resources. That’s approximately N5.08 trillion, leaving just N440 billion in non-oil exports affected by the tariff.”
He added that the 14% tariff was moderate compared to those imposed on other countries like Vietnam and China, which are subject to tariffs of 46% and 34%, respectively.
Despite the minimal impact, Edun said the government remains vigilant. “We are going back to the drawing board to re-evaluate our budget assumptions in light of changes in global trade dynamics and economic performance in the first quarter,” he stated.
Edun also spoke on broader economic reforms, highlighting the shift from traditional borrowing towards attracting equity investments and expanding public-private partnerships.
“Under President Tinubu’s administration, we’ve moved from concessional loans and Eurobonds to prioritising equity funding and PPPs to stimulate growth,” he noted, referencing the Benin-Asaba highway concession under the Highway Development and Management Initiative, which has drastically cut travel time from four hours to just one.
Turning to corporate governance, the finance minister stressed the need for transparency and professionalism, especially as major public enterprises like the Nigerian National Petroleum Company gear up for potential public listings.
“Strong governance is key to attracting private investment,” Edun said. “That’s why we’re introducing the MOFI Corporate Governance Scorecard as a benchmark for best practices.”
Minister of Power, Adebayo Adelabu, echoed Edun’s sentiments, describing governance reforms as critical for transforming state-owned enterprises, particularly in the power sector.
“The unbundling of the Transmission Company of Nigeria into the Nigeria Independent System Operator and the Transmission Service Provider is a step towards greater transparency and value creation,” Adelabu explained.
He commended MOFI for driving governance improvements across government-owned businesses, asserting that “effective corporate governance is essential to safeguard public assets and align operations with our national goals, especially in areas like energy access and transition.”
Dr. Shamsuddeen Usman, Chairman of MOFI’s Board of Directors, emphasized the organisation’s commitment to institutional reform.
He revealed that MOFI has rolled out critical components of its new scorecard, including long-term strategies, whistleblower policies, and direct board-level auditing mechanisms.
“Portfolio companies will be assessed by an independent third party to ensure impartiality, and MOFI’s own performance will be judged by the average scores of all firms under its supervision,” Usman said.
Meanwhile, MOFI’s Managing Director and CEO, Dr. Armstrong Takang, lamented the weak governance culture in many state-run enterprises. He revealed that only 20 out of 52 companies in MOFI’s portfolio had released audited financial statements in the last three years.
“Many of these failures stem not just from poor decisions but also from inertia—decisions that are delayed or completely avoided,” Takang said. “This hampers economic growth and delays our progress toward becoming a $1 trillion economy.”
He added that the current global economic uncertainty, marked by rising tariffs and shifting alliances, presents a chance for Nigeria to rethink and reform its governance structures.
“This is a moment of reflection—a time to strengthen our state-owned enterprises and attract equity investments to reduce our dependence on debt,” Takang concluded.
