A RENEWED WAVE of global trade tensions is drawing fresh scrutiny to Nigeria’s longstanding import policies, as the United States escalates its economic retaliation with a 14 percent tariff on Nigerian exports. While much of the media coverage has focused on President Donald Trump’s new tariff blitz against China, a deeper look reveals that Nigeria’s controversial import restrictions are increasingly being spotlighted as emblematic of what the US sees as unfair trade practices.
At the centre of the issue is Nigeria’s Central Bank directive, first introduced in 2015, which blocks access to foreign exchange for 25 categories of imported goods. The policy, aimed at promoting local manufacturing and preserving foreign reserves, has over the years hardened into a significant barrier for international trade, particularly with the United States.
“These policies create significant trade barriers that lead to lost revenue for US businesses looking to expand in the Nigerian market,” the Office of the United States Trade Representative (USTR) stated in its latest 2025 National Trade Estimate Report on Foreign Trade Barriers, published 31 March. The statement was part of a broader campaign under President Trump’s aggressive “America First” trade policy, which seeks to address what the administration views as systemic disadvantages for US exporters.
According to the USTR, US goods and services exports to Nigeria totalled approximately $5.2 billion in 2023, while imports from Nigeria stood at $4.3 billion. However, the trade relationship has been repeatedly hampered by Nigerian import controls, foreign exchange restrictions, and inconsistent customs regulations.
US agricultural exports to Nigeria—once a significant channel for goods such as poultry, pork, and fruit juices—have taken a major hit. According to data from the United States Department of Agriculture (USDA), poultry exports alone dropped sharply from $160 million in 2014 to just under $38 million in 2023, representing a staggering 76 per cent decline over a nine-year period.
The USDA’s Foreign Agricultural Service attributes this drop to Nigeria’s sustained import restrictions and currency access limitations, which continue to limit the flow of US agricultural products into one of Africa’s largest consumer markets. This trend is further documented in the agency’s latest Exporter Guide Annual report, which outlines persistent trade challenges faced by American businesses in Nigeria.
The newly announced 14 percent tariff on Nigerian goods, effective 9 April, is being interpreted by analysts as a retaliatory signal—part of a broader US campaign to press countries seen as deploying restrictive or protectionist policies.
Nigeria’s import prohibition list spans an extensive range of goods, from beef and pork to tomato paste, ballpoint pens, soaps, second-hand clothing, and vehicles older than 12 years. While not outright banned from entry, access to foreign exchange through official channels for their importation has been restricted by the Central Bank of Nigeria since 2015 — a move aimed at encouraging local manufacturing and reducing pressure on foreign reserves. However, critics argue that this measure has distorted market dynamics, driven up prices, and incentivised smuggling.
According to the United States Trade Representative’s 2025 National Trade Estimate and Nigeria’s own Trade Portal, the restrictions effectively render these goods inaccessible to most formal businesses.
The USTR’s 2025 estimate also flags non-tariff barriers that disproportionately affect US exporters. Among them are Nigeria’s sanitary and phytosanitary (SPS) rules, which require certificates that can only be issued by specific national authorities or third parties. Due to Nigeria’s limited capacity to inspect or test imported goods, such rules often lead to delays and divert trade to informal channels.
Digital trade is another friction point. The USTR report cited concerns about Nigeria’s data localisation practices, including mandatory registration of e-commerce platforms and restrictions on cross-border data flows, which complicate operations for American tech firms.
To address systemic issues within its customs operations, Nigeria had approved a $3.1 billion modernisation project in 2020, intended to automate and streamline port procedures. However, five years later, implementation remains stalled due to legal disputes and bureaucratic inertia.
The project was designed as a public-private partnership, with execution expected within 36 months. According to the USTR, “implementation delays and litigation have prevented meaningful progress,” leaving many customs procedures paper-based and prone to manipulation.
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The Central Bank of Nigeria made headlines in June 2023 when it merged multiple exchange rates into a single market-driven rate. The move was welcomed by international observers and investors, with the naira trading more transparently in the Nigerian Foreign Exchange Market.
Still, bottlenecks persist. The CBN was grappling with a $7 billion backlog of unfulfilled foreign exchange orders as of late 2024. Although $4.6 billion worth of validated claims had reportedly been settled by March 2025, delays and opacity in the approval process remain a critical concern for US firms seeking to repatriate profits or fund operations.
The USTR report observed that while FX liberalisation has progressed, “repatriation of funds remains a significant barrier to investment,” often subject to delay or outright denial.
Further straining trade relations is Nigeria’s procurement landscape. Under current law, foreign companies may only bid for government contracts above certain thresholds, and even then, local preferences frequently tip the scales.
The Public Procurement Act of 2007 and Executive Order 5 of 2018 are pivotal in shaping Nigeria’s public procurement landscape, particularly in science, engineering, and technology sectors. The Public Procurement Act established the Bureau of Public Procurement (BPP) to oversee and regulate procurement processes, ensuring transparency and standardisation.
Executive Order 5, signed by President Muhammadu Buhari in 2018, aims to promote local content by mandating that all procuring authorities prioritise Nigerian companies in contract awards. It also restricts the Ministry of Interior from issuing visas to foreign workers whose skills are readily available in Nigeria.
Despite these initiatives, concerns have been raised about the effectiveness of these policies. Critics argue that the Public Procurement Act has not fully achieved its objectives due to issues like insider abuse and corruption, leading to inflated contract sums and poorly executed projects.
“Nigeria is neither a party to the WTO Agreement on Government Procurement, nor an observer,” the USTR noted, adding that the National Assembly runs its own procurement regime outside national transparency frameworks.
The fallout over Nigeria’s import restrictions comes amid a wider global trade escalation. On 2 April, President Trump imposed a sweeping 10 percent baseline tariff on all US imports, targeting countries with perceived trade imbalances. China was hit with a 104 percent tariff, prompting immediate retaliatory measures. The European Union and Kenya were also named in the USTR’s spotlight for their own trade barriers.
In a White House briefing on 2 April, Press Secretary Karoline Leavitt said, “President Trump has a spine of steel and will not break,” referring to the administration’s trade agenda. She added that countries engaging in retaliatory tariffs or restrictive practices “are making a mistake.”
As the US steps up its reciprocal tariff strategy, Nigeria faces the risk of broader consequences. While its ban on certain imports is rooted in economic self-reliance, the cost is becoming clearer: blocked trade opportunities, diminished investor confidence, and now, retaliatory action from one of its top trading partners.
Experts argue that Nigeria must strike a balance between protecting local industries and ensuring an open, transparent, and competitive trade environment.
Without such recalibration, the country may find itself increasingly isolated in a global economy that demands flexibility, modernisation, and fairness.
