The Federal Government has set up a subcommittee to analyze the economic impact on Nigeria’s economy in response to recent trade tariffs introduced by the United States. The panel will examine both direct and indirect implications, particularly on Nigeria’s fiscal outlook and the global oil market.
The announcement was made in a press release, signed by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance.
According to the statement, “Of particular focus was the recent announcements of tariff measures by the United States Government and their potential impact on Nigeria’s economy. While crude oil—Nigeria’s major export—has not been directly targeted, the EMT noted the accompanying fall in the international oil price.”
To promote evidence-based approach to policy making, the Economic Management Team (EMT) agreed to form a subcommittee responsible for thoroughly examining the economic impact of the U.S. tariffs, along with shifts in global commodity prices.
The newly inaugurated subcommittee includes representatives from the Federal Ministry of Finance, the Ministry of Budget and Economic Planning (including the Budget Office of the Federation), and the Central Bank of Nigeria.
Manga further explained that “The subcommittee also held its inaugural meeting this week and will ensure it presents its findings to the full EMT without delay.” He stressed that the creation of the subcommittee highlights the government’s commitment to thoroughly assessing both economic policies and to respond proactively to any risks that may threaten Nigeria’s financial stability.
While the recently announced U.S. tariffs do not directly target crude oil which is Nigeria’s main exports there are growing concerns about their indirect impact on oil prices and overall market confidence.
JP Morgan, a leading global financial services firm, recently cautioned that ongoing uncertainties could trigger a decline in foreign portfolio investment, further highlighting the urgency of Nigeria’s policy response.
The Federal Government’s Decision to establish this subcommittee indicates its recognition of the gravity of global economic shifts and reflects its commitment to developing timely and well-informed strategies. The subcommittee is expected to submit its findings promptly, offering valuable insights and recommendations to guide Nigeria’s economy through the current global economic volatility.
