Adeniyi Confirms Nigeria’s Readiness to Engage US Authorities Over 14% Trade Tariff

As Chairman of the Economic Community of West African States (ECOWAS) Nigeria has announced that it is set to open talks with United States Authorities to address the newly imposed 14% reciprocal tariff on the country’s exports.

Comptroller-General of the Nigeria Customs Service (NCS) Bashir Adewale Adeniyi disclosed this on Tuesday in Abuja while giving report of performance of the agency in the first quarter of year 2025.

The newly introduced 14 per cent tariff by the Donald Trump Administration in U.S, marks a significant shift in U.S.-Nigeria trade relations, with the U.S. government citing an ongoing trade imbalance.

According to the Trump administration, Nigeria imposes a 27 per cent tariff on U.S. exports, a disparity the U.S. claims has long been detrimental to American businesses and consumers.

Aside from Nigeria, some African countries that will bear the brunt of the new policy include: Algeria (30 per cent); Lesotho (50 per cent); Mauritius (40 per cent); Kenya (10 per cent); Namibia (21 per cent) and Ethiopia as well as Ghana 10 per cent apiece. South Africa was handed down a reciprocal tariff of 30 per cent.

Speaking during his briefing on Tuesday, Adeniyi said “This development has potential implications for our export trade and requires strategic diplomatic and policy responses,”

While details remain sketchy, the CG said consultations among relevant Nigerian authorities led by the Ministry of Industry, Trade and Investment are already underway to shape the response.

Adeniyi explained that the Government is navigating the tariff slam with a calm and strategic regional approach.

“We are working on a regional approach that addresses both Nigeria’s economic interests and broader trade dynamics,” he responded to BusinessDay’s question.

He emphasised that while tariff structures vary across countries, Nigeria’s official response, expected in the coming days, would reflect consultations with stakeholders and align with its role as Chairman of ECOWAS.

According to him, the NCS collected ₦1.75 trillion in Q1 2025, exceeding its quarterly target of ₦1.645 trillion by ₦106.5 billion. This indicates 106.47% of its projection. It also marks a 29.96% year-on-year increase compared to the ₦1.35 trillion collected in Q1 2024.

“This outstanding performance confirms our revenue optimization strategies are working. We’ve effectively curtailed leakages while streamlining compliant trade,” the Customs chief said.

The month-by-month breakdown showed robust growth across the board, with the agency collecting ₦647.88 billion in January, some 65.77% year-on- year growth, and 18.12% above target.

In February, ₦540.11 billion was collected, showing 19.97% growth, and 1.3% above target, while March figure was ₦563.52 billion or 11.22% growth, and 2.7% above target.

Adeniyi attributed the performance to tighter enforcement, digitisation of clearance processes, and strengthened partnerships across Government and private sector stakeholders.

While revenue collection has been strong, the CG highlighted that Customs faced 62 exchange rate adjustments in Q1 2025 alone, with the naira ranging from ₦1,477.72 to ₦1,569.53 per dollar, averaging ₦1,521.59.

Although more stable than Q4 2024 when rates peaked at ₦1,688.28, the volatility, the CG noted, continues to unsettle importers and complicate Customs valuation.

“We are working closely with the Central Bank and Ministry of Finance to stabilize the exchange rate framework used for import declarations,” he said.

Additionally, the suspension of the Financial Customs Service Operation (FCSO), also known as the four percent FOB policy, triggered temporary disruptions during the quarter, requiring rapid operational adjustments across customs formations.

Meanwhile, smuggling remains an entrenched challenge despite enhanced surveillance and tech-driven enforcement.

However, through practical solutions like its B’Odogwu platform, the NCS ramped up anti-smuggling operations, recording 298 seizures in Q1 2025, intercepting ₦7.7 billion worth of smuggled goods, and reflecting a 78.41% increase compared to Q4 2024.

However, seizures were down 19.70% compared to Q1 2024, when the DPV reached ₦9.59 billion, a sign of improved compliance and the deterrent effect of increased enforcement.

Rice remained the most prevalent seized commodity, with 159 cases involving 135,474 bags valued at ₦939.31 million. Petroleum products followed closely, with 61 seizures totaling 65,819 liters, while narcotics interceptions showed a marked uptick. The NCS also seized high-value wildlife products worth ₦5.65 billion.

“We continue to refine our enforcement strategies through intelligence-led operations and advanced non-intrusive inspection technology,” the CG said, emphasising the NCS’s commitment to strengthening interagency cooperation to safeguard national revenue and security.