Nigeria Prioritizes Domestic Reforms Despite US Tariffs

Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, announced that the country will not adopt a reactionary stance in response to the recently imposed 15% tariffs by the United States. Instead, Oduwole emphasized the Tinubu administration’s commitment to pursuing long-term reforms aimed at safeguarding Nigeria’s interests and bolstering domestic investment.

During an interview with Arise News on October 16, 2023, Oduwole stated, “We’re not reactionary — we’re focused on what is best for Nigeria.” She reiterated that the government’s strategy remains focused on stability, capital mobilization, and fostering private-sector growth. The minister acknowledged the significance of the U.S. as a strategic trading partner, highlighting a commercial investment partnership launched on June 24, 2023.

While some criticisms regarding Nigeria’s trade facilitation have merit, Oduwole assured that the government is actively addressing these issues through its internal reform processes. “You would know that we’re already addressing many of these systemically for our own good — first of all, for Nigeria,” she explained. She praised President Bola Ahmed Tinubu’s efforts in stabilizing monetary policy and foreign exchange repatriation, asserting that “the best is yet to come.”

Strengthening Regional Trade Relations

Oduwole also highlighted Nigeria’s initiatives within the West African region, particularly the strengthening of ties with the Republic of Benin. Recently, she led a high-level delegation to Cotonou to advance trade agreements initiated during President Tinubu’s visit to the country in December 2023. She stated, “The idea the two presidents had was to basically make our borders completely seamless.”

The memorandum of understanding (MOU) under negotiation will focus on four key areas: trade in goods, trade in services and private sector engagement, customs and trade facilitation, and establishing a legal framework. The MOU is expected to be finalized by the first quarter of 2026.

During the delegation’s visit, which included officials from Nigeria’s Customs and Foreign Affairs Ministry, they toured the Beninese seaport and inspected a joint border post. Oduwole emphasized the importance of ensuring that goods are traceable to combat smuggling effectively. “The collaboration between our two customs is actually a model that is going to be used across the other three thematic areas,” she added.

Focus on Domestic Capital Mobilization

Oduwole reiterated that Nigeria’s trade and investment agenda will prioritize domestic capital mobilization alongside attracting foreign direct investment. She stated that Nigeria is a leading advocate in the African Continental Free Trade Area (AfCFTA), particularly in digital trade. “We’re also looking for other markets and other business partners around the world,” she noted.

At the recently held Domestic Investors Summit, the administration underscored two critical discussions: access to capital and access to markets. Oduwole explained that after stabilizing the macroeconomic environment, the focus would shift to building trust to encourage capital inflow alongside local investments.

She pointed to ongoing reforms in tax, banking, and monetary policy as indicators of a broader economic transformation. “You see the whole reform of our tax infrastructure. You see what our own private sector — just even our banks — are doing and how they’re now consolidating and going to be bigger and stronger,” she said.

With multiple engagements held this year, including hosting the Africa Venture Capital Association and the African Sovereign Wealth Authorities, Oduwole expressed optimism about the groundwork being laid for sustainable growth. “I expect that by the time we’re in Q1 of 2026, we’d have seen a significant shift in how capital is being catalyzed, particularly in the Nigerian economy,” she concluded.

Confident in the direction of the administration, Oduwole remarked on President Tinubu’s business acumen, stating, “When you look at the renewed hope agenda… this economy is moving in the right direction. Even the strongest critics will admit that whatever the lag, we’re in the right direction — and the best is yet to come.”