U.S. reciprocal tariffs take effect

In the wake of U.S. President Donald Trump's implementation of sweeping tariffs, including levies of over 100 percent against China, countries around the world are assessing the impact on their own economies. Nigeria, a key player in Africa's economy, is also considering its strategy in response to the tariffs. Tilewa Adebajo, CEO of The CFG Advisory, recently discussed Nigeria's policy response in an interview with CNBC Africa. Adebajo shared his thoughts on the impact of the tariffs on Nigeria's exports to the United States, as well as the broader implications for global trade and the foreign exchange market. The discussion began with Adebajo highlighting that Nigeria's exports to the U.S. are primarily oil and gas, which are exempt from the tariffs. He emphasized that the impact of the tariffs on Nigeria's trade with the U.S. is minimal given the limited range of products exported. Adebajo also pointed out that Nigeria's main trading partners are China and India, with a focus on oil and gas exports to India and imports from China. He suggested that Nigeria should prioritize the African Continental Free Trade Area to strengthen intra-African trade. Regarding the Nigerian government's response to the tariffs, Adebajo discussed the measures taken to help Nigerian businesses adapt, such as expanding alternative export markets and enhancing quality control of goods. He emphasized the importance of strengthening trade diplomacy to secure favorable terms and highlighted the need for African countries to focus on regional trade agreements like the African Continental Free Trade Area. The conversation then shifted to the broader implications of the trade war between the U.S. and China. Adebajo warned that the escalation of tariffs could lead to a global recession, impacting oil prices and stock markets. He expressed concerns about the potential consequences for American consumers and the global economy. Adebajo criticized the unilateral approach taken by the U.S. and highlighted the role of the World Trade Organization in resolving trade disputes. In conclusion, Adebajo stressed the importance of African countries, including Nigeria, diversifying their trade partnerships and focusing on regional integration. He urged Nigeria to prioritize oil production to strengthen its economy and emphasized the need to take advantage of trade opportunities with various global partners. Adebajo's insights shed light on the complexities of navigating the current global trade environment and underscored the importance of strategic decision-making in a volatile economic landscape.