U.S. Tariffs: Can Nigeria mitigate impact on agric exports?

Nigeria faces challenges as the United States imposes a 14 per cent tariff on Nigerian exports, particularly impacting agricultural products. The Manufacturers Association of Nigeria predicts a significant loss of about 2 trillion naira in agricultural exports due to the tariffs. To delve deeper into the implications of these tariffs, Kola Masha, CEO of Babban Gona, shares insights on potential strategies to mitigate these impacts and enhance Nigeria's agricultural sector. Masha highlights the importance of diversifying trading partners and collaborating with neighboring countries like Ghana and Cote d'Ivoire to enhance trade policy coordination and stabilize markets. The key theme emerging from the interview is the need for strategic collaborations and coordinated national strategies to bolster Nigeria's agricultural exports amidst trade challenges. Masha emphasizes the potential benefits of regional cooperation in the agricultural sector, comparing it to organizations like OPEC that exercise collective power in managing resources and prices. He underscores the importance of aligning trade policies for specific crops such as cocoa to optimize production and value addition across borders. Three key points highlighted in the interview include the significance of trade policy coordination among cocoa-producing countries, the potential for regional trading blocks in Africa to enhance market stability, and the importance of a phased approach in agricultural transformation to maximize productivity and food security. Masha emphasizes the need to prioritize productivity optimization through access to quality seeds, finance, and support structures before investing in infrastructure like irrigation to elevate efficiency. In response to Nigeria's president declaring a national emergency on food security and advocating for expanded irrigation infrastructure, Masha advises learning from successful agricultural transformations in countries like Thailand. He suggests a three-stage approach focusing on productivity optimization, efficiency enhancement, and infrastructure development to drive sustainable agricultural growth and food security. Overall, the interview underscores the need for proactive measures and collaborative efforts to navigate the challenges posed by tariffs and enhance Nigeria's agricultural resilience in the global market.