The U.S. has recently introduced several policies spearheaded by the Trump administration, ranging from reciprocal tariffs and the re-evaluation of foreign aid to stricter visa vetting.
The U.S.’s recent Liberation Day Tariffs, designed to reshape trade policy through reciprocal actions aimed at addressing the U.S. trade deficit, imposed varying percentages on different countries—with Nigeria hit with a 14% tariff.
This development may hinder the benefits previously enjoyed under the African Growth and Opportunity Act (AGOA), which allowed African countries to export products to the U.S. tariff-free.
AGOA covered products like agricultural goods, footwear and apparel, vehicle parts, chemicals, wine, and steel.
Tariffs on these sectors could raise costs, potentially affecting export volumes and reducing foreign capital inflow into AGOA-beneficiary countries.
Nigeria exported oil and non-oil products worth ₦5.5 trillion to the U.S. in 2024. A reduction in demand for these exports could significantly diminish foreign exchange inflows.
As if that is not enough, President Trump signed an executive order to re-evaluate and realign U.S. foreign aid, initiating a 90-day pause on all U.S. foreign development assistance.
This led to the dissolution of the U.S. Agency for International Development (USAID).
According to a recent report by PwC, Nigeria ranked fifth among African countries receiving USAID funding in 2024.
These funds support health, education, and economic development in recipient countries. As aid declines, these sectors risk disruption.
Trump also mandated stricter security screening for visa applicants and individuals currently residing in the U.S.
Recent report indicates a total of 2.75 million African-born immigrants were in the U.S. as of 2022, with Nigerians constituting 16.3% of that population.
In 2020, the U.S. expanded its visa ban to include Nigeria, Sudan, Eritrea, and Tanzania due to non-compliance.
With tighter visa regulations, the flow of Nigerian workers and students to the U.S. is expected to reduce, thereby diminishing remittance flows into the country—an important contributor to foreign exchange stability and consumer spending.
