President Bola Ahmed Tinubu's Economic Management Team (EMT) is set to meet to assess the impact of President Donald Trump's new tariffs on the global economy and advise the government on the way forward. This comes as the global stock market experiences a downturn and the naira weakens.
The EMT may consider adjusting the 2025 budget in response to the trade war. Finance Minister Wale Edun acknowledged the high level of global uncertainty and stated that the government would evaluate various scenarios and options.
Since Trump's tariff announcement, the naira has depreciated, closing at N1,629 per dollar at the official Nigerian Autonomous Foreign Exchange Market (NAFEM), a 1.81% decrease from N1,600/$1 on Friday. The parallel market rate also fell to N1,565/$1 from N1,550/$1.
The Central Bank of Nigeria (CBN) intervened with $197.71 million last Friday to stabilize the market. Despite this, the exchange rate continued to slide, trading between N1,590 and N1,655 per dollar on April 7, with a weighted average of N1,612.23/$1.
Major stock markets have also tumbled due to concerns over Trump's tariffs. Trump has insisted on maintaining the tariffs and threatened China with an additional 50% levy.
The Trump administration has imposed tariffs ranging from 10% to 65% on various countries, including a 14% tariff on Nigeria's exports to the United States. However, mineral exports, including oil, are exempt from these tariffs.
Edun noted that the price effect of oil may affect Nigeria, and the EMT is responsible for analyzing potential scenarios and advising the government.
During a Ministry of Finance Incorporated (MOFI) Corporate Governance Forum, Edun highlighted plans to consider budget adjustments, expenditure prioritization, and innovative non-debt financing strategies. Nigeria has recorded trade surpluses with the US in the last three years (2022-2024).
Edun emphasized the importance of good corporate governance, particularly for State-Owned Enterprises (SOEs), to foster resilience, efficiency, and long-term value creation.
MOFI Managing Director Dr. Armstrong Takang stated that the corporate governance scorecard launched at the event would help evaluate organizations' alignment with local regulations and international best practices.
Outgoing World Bank Country Director Dr. Ndiaye Diop called for greater transparency in Nigeria's SOEs to ensure accurate financial reporting and fairness.