Nigeria’s ‘struggling’ economy is likely to take a fresh downturn if the United States President, Donald Trump, follows through with his threat to impose an extra trade tariff on countries aligning with BRICS.
The word BRICS was coined from the names of the pioneer nations of Brazil, Russia, India, China, and South Africa, which came together under an informal grouping of emerging economies.
It also comprised six coalition members, such as Egypt, Ethiopia, the United Arab Emirates UAE, Iran, Saudi Arabia, and Indonesia, which joined in 2024.
Trump lashed out at the 11 nations of BRICS on Sunday, vowing to impose an extra 10 per cent tariff on the grouping that includes Brazil, Russia, India, and China.
“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump wrote on his Truth Social platform Sunday.
Nigeria is one of the countries aligning with BRICS.
Nigeria was formally admitted as the ninth BRICS partner country in January 2025, a status introduced at the 16th BRICS Summit in October 2024.
President Bola Tinubu arrived in Rio De Janeiro, Brazil, on Saturday for the 17th summit of BRICS countries.
President Tinubu is attending the summit at the invitation of President Luiz Inacio Lula da Silva of Brazil, on the strength of Nigeria’s status as a ‘partner country’ — a membership category short of full status.
As a partner country, Nigeria can participate in BRICS meetings, summits, and initiatives, contributing to discussions and official documents.
The partner status is an upgrade from its previous guest status, which the country had enjoyed over the years.
Trump’s fresh threat comes as BRICS leaders at the summit on Sunday criticised Trump’s “indiscriminate” import tariffs and recent Israeli-US strikes on Iran.
Voicing “serious concerns about the rise of unilateral tariff” measures, BRICS members said the tariffs risked hurting the global economy, according to a summit joint statement.
Trump fired back at the bloc directly on social media Sunday night.
In April, Trump threatened allies and rivals alike with a slew of punitive duties, before offering a months-long reprieve in the face of a fierce market sell-off.
Trump has warned he will impose unilateral levies on partners unless they reach “deals” by August 1.
Nigeria’s economy has taken a tumble since 2023, with headline inflation reaching 28.92 per cent in December 2023 in relative to 18.85 per cent in 2022. It rose further by 34.2 per cent in June 2024, which is a 28-year high
The current inflation rate is 22.97% as of May 2025, showing a decrease of 0.74% from April 2025’s rate of 23.71%.
On the otjer hand manufacturers and businesses have been on rje.edge woth the high CBN’s anchor Monetary Policy Rate (MPR).
The MPR is currently at 27.50%. This rate was retained at the CBN’s 300th Monetary Policy Committee (MPC) meeting, held on May 19-20, 2025.
Consequently, banks are charging between 30 to 35 percent on lending and this has made businesses and economy to sugger due to dearth of credit to the real sectors on the account of higher rates charged by banks.
The apex bank has had to make recent policy changes, including the removal of fuel subsidies and the floatation of the naira’s exchange rate — aimed at stabilising the economy and boosting growth. However the policy decisions.have been seen as triggers of the current crisis
While Nigeria holds the position of Africa’s largest economy, it faces challenges such as high inflation, a fluctuating global oil market, and a need for diversification.
The country’s GDP has seen fluctuating growth rates in recent years, with an average of 2.3 per cent in the decade leading up to 2023.
An extra 10 per cent tariff from the US could have a high impact on Nigeria’s exports to the US.
Nigeria’s primary export to the United States is crude oil, making up a significant portion of their bilateral trade. Over 90 per cent of Nigeria’s exports to the US consist of crude oil and related petroleum products.
A smaller portion of exports to the US includes items like fertiliser, agricultural commodities, and manufactured goods.
While the US is a major trading partner for Nigeria, Nigeria represents a relatively small percentage of the total trade volume of the US.
Recent reports indicate that US tariffs on non-oil exports from Nigeria could negatively impact Nigeria’s efforts to diversify its export base.
Again, Nigeria’s heavy reliance on crude oil exports makes it vulnerable to price fluctuations and shifts in global demand.
