By Abiola Olawale
In a belated move said to be aimed at safeguarding Nigeria’s economic stability, the Federal Ministry of Finance says ir has established a subcommittee tasked with evaluating the direct and indirect impacts of recent trade tariffs imposed by the United States.
The announcement follows a meeting of the Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, aimed at addressing the fiscal and macroeconomic implications of the US trade measures.
According to a statement by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, the subcommittee comprises 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 (CBN).
The statement partly reads: “Of particular focus was the recent announcements of tariff measures by the United States Government and their potential impact on Nigeria’s economy.
“While crude oil—Nigeria’s major export—has not been directly targeted, the EMT noted the accompanying fall in the international oil price.
“The subcommittee also held its inaugural meeting this week and will ensure it presents its findings to the full EMT without delay.”
He emphasised that the establishment of the subcommittee demonstrates the government’s commitment to carefully assess economic policies and international developments, ensuring proactive management of potential risks to the Nigerian economy.
This comes after US President Donald Trump slammed a 14% tariff on Nigerian goods entering the US.
Recent global economic developments, particularly the introduction of tariffs by the United States administration, have triggered a significant decline in global oil prices, dropping below Nigeria’s fiscal breakeven level of approximately $60 per barrel.
Analysts warn that prolonged lower oil prices could push Nigeria’s current account balance into deficit and weaken the naira.
JP Morgan, a leading global financial services firm, recently warned of potential foreign portfolio investment declines due to these global uncertainties, further highlighting the urgency of Nigeria’s response.
