Nigeria’s Finance Minister Hints FG May Consider Reviewing ₦54.99trn 2025 Budget in Response to U.S. Tariff Hike

The Federal Government may consider reviewing its proposed ₦54.99 trillion 2025 budget to reduce the possible impact of new U.S. trade tariffs on the Nigerian economy.

This was revealed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Monday, 7 April, at a Corporate Governance Forum hosted by the Ministry of Finance Incorporated (MOFI) in Abuja.

Edun said President Bola Tinubu’s Economic Management Team (EMT) has been asked to examine the ongoing trade tensions and advise the government on appropriate steps. One of the options being considered is adjusting the 2025 budget to reflect current global realities.

He explained that the U.S. tariff policy could lead to a drop in global oil prices, affecting Nigeria’s earnings since the country relies heavily on crude oil exports. To prepare for this, he claimed that the government is working to increase oil production and boost revenue.

Edun added budget adjustment, prioritisation where possible, and innovative non-debt financing strategies.

It may be recalled that last week, U.S. President Donald Trump announced new import tariffs, including a 10 per cent base duty on goods from more than 50 countries, Nigeria included. U.S. officials say Nigeria’s 27 per cent tariff on American products has made trade unfair for U.S. businesses.

The move has raised concern among Nigerian officials. In a statement issued on Sunday, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the new tariffs could harm Nigerian exports. She said many Nigerian products rely on low prices and free market access to compete globally.

Oduwole added that over 90 per cent of Nigeria’s exports to the U.S. are made up of crude oil, gas, and other mineral fuels. These exports are worth between $5 billion and $6 billion annually. Products such as fertilisers, lead, and farm goods like nuts and flour make up a much smaller share. She warned that the new tariffs could make it harder for Nigerian exporters to maintain their market share in the U.S.

Although Edun claimed that Nigeria is better prepared to handle global trade challenges, some people at the event reportedly disagreed. There were murmurs from the audience as he spoke. Nigeria’s economy has steadily declined over the past couple of months. The naira has also continued its downward trend and increased fears of heightened hardship for citizens.

Read More:

• Impact Of The U.S. Tariff Regime On Africa

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