Nigeria’s already precarious economy may be put under further stress if US President Donald Trump follows through on his recent threat to impose a 10% tariff on nations who are part of the BRICS alliance.
Trump, who has stepped up his trade rhetoric in the run-up to the US elections, reportedly threatened on Sunday via his Truth Social platform that any country adopting the “anti-American” policies of the BRICS will be subject to an additional import tax. He stated that there would be no exceptions to this rule.
Nigeria has been involved in meetings and projects under the emerging economies bloc since January 2025, when it legally became a BRICS partner nation.
Nigeria has been a partner in the expanded BRICS framework, and President Bola Tinubu came in Rio de Janeiro on Saturday for the 17th BRICS Summit at the invitation of Brazilian President Luiz Inácio Lula da Silva.
In 2024, six more nations—Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates—were allowed to the organization, which was first created by Brazil, Russia, India, China, and South Africa.
Even though Nigeria is not yet a full member, the nation actively participates in high-level discussions, the formulation of policies, and summit statements.
Condemning “indiscriminate” import taxes on Sunday, the BRICS countries warned that such actions could cause economic instability worldwide. The coalition further escalated tensions with Washington by denouncing recent airstrikes on Iran by the United States and Israel.
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Nigeria’s economy, the biggest in Africa, is still largely reliant on crude oil, with more than 90% of its exports to the US being refined petroleum.
Although Nigeria’s share of US trade is very small, any additional tariff, especially on non-oil exports, might hinder diversification efforts and limit economic progress.
Nigeria has been dealing with growing inflation, unstable currency, and the effects of significant reforms, such as the elimination of fuel subsidies and the implementation of a floating exchange rate, since 2023.
The Central Bank of Nigeria (CBN) reported that headline inflation improved from 18.85 percent in 2022 to 34.2% in mid-2024 before decreasing to 27.5% by mid-2025.
Consumer prices are still high, and the jobless rate still clouds recovery prospects despite the modest respite. Recent meetings of the CBN’s Monetary Policy Committee have kept interest rates the same in an effort to control inflation.
Over the past ten years, GDP growth has averaged just 2.3%, which is less than the pace of population growth and has raised concerns about growing poverty and inequality.
