The Minister of Finance, Wale Edun, has stated that the Federal Government plans to enhance non-oil revenue as a strategy to mitigate the negative impact of the trade tariffs imposed on certain countries by President Donald Trump.
Edun also reassured that the Economic Management Team (EMT) will convene to evaluate the potential effects of the 14% tariff on Nigerian exports to the United States. Following this, the EMT will provide recommendations on how to cushion the impact on the nation’s economy.
Speaking at an event hosted by the Ministry of Finance Incorporated on Monday, Edun explained that while Nigeria could face negative consequences through a drop in oil prices, the government is working to increase oil production and boost non-oil revenue sources.
The Trump administration recently implemented tariffs ranging from 10% to 65% on various countries, including Nigeria, which faces a 14% tariff on its exports to the U.S.
However, addressing questions from journalists during the MOFI’s Corporate Governance Forum, Edun pointed out that the U.S., at the heart of the tariff conflict, announced on April 2 that it would exempt mineral exports, including oil, from the tariff.
“As a result, it’s the potential impact of oil prices that could affect Nigeria. The Economic Management Team of President Bola Ahmed Tinubu will assess the different possible outcomes,” he stated. “There’s significant global uncertainty, and no one knows exactly how things will unfold. We’re unsure what will be delayed, reversed, or fully implemented.”
He emphasized that this announcement does not mean the budget is being revised but that the government will assess the various scenarios and advise accordingly.
Earlier in his speech at the event, titled “Ensuring Value Creation in State-Owned Enterprises Through Better Corporate Governance”, Edun discussed the need for budget adjustments, expenditure prioritization, and innovative non-debt financing strategies.
Edun noted that Nigeria has enjoyed a trade surplus with the U.S. over the last three years (2022-2024), with exports to the U.S. reaching N1.8 trillion, N2.6 trillion, and N5.5 trillion, respectively.
“Fortunately, oil and mineral exports accounted for 92% of these exports. This means oil and mineral exports totaled ₦5.08 trillion, while non-oil exports were just ₦44 billion,” he explained.
He also pointed out that the tariff’s effect on exports would be minimal as long as oil and mineral export volumes remain stable.
“The real risk to Nigeria lies in the potential drop in oil prices. We are working to increase crude oil production to mitigate any price-related impacts. Additionally, we are focusing on boosting non-oil revenue through the FIRS and Customs, making necessary budget adjustments, and exploring innovative non-debt financing strategies,” Edun added.
Edun highlighted the importance of corporate governance, stating that as countries worldwide face economic uncertainties and financial challenges, corporate governance is becoming even more critical. He stressed that good governance is vital in promoting sustainable development, investor confidence, and institutional integrity.
“Corporate governance is essential for establishing resilience, efficiency, and long-term value creation,” Edun emphasised.
He also underscored the importance of State-Owned Enterprises (SOEs) in Nigeria’s economy, noting their significant influence across sectors like energy, infrastructure, telecommunications, and financial services. However, he acknowledged that inefficiencies, poor financial management, and governance challenges have hindered their potential to drive economic growth, job creation, and industrial development.
