The Minister of Finance, Wale Edun, has said that the Federal Government will boost non-revenue as a means of cushioning the adverse effects to trade tariffs imposed on countries by President Donald Trump.
Edun also assured that the Economic Management Team (EMT) will meet to assess the likely impact of the 14 per cent tariff on goods exported from Nigeria to the United States.
He said the EMT will afterwards, make recommendations to cushion its impact on the nation’s economy.
Edun, who was speaking at an event organised by the Ministry of Finance Incorporated on Monday, said that while the adverse effect on Nigeria will be through an oil price plunge, the government is intensifying efforts to ramp up oil production and boost non-oil revenues.
The Trump administration recently imposed various tariffs ranging between 10 per cent and 65 per cent on different countries across the world, including Nigeria which got a 14 per cent tariff on its exports to the United States.
However, fielding questions from journalists on the sidelines of the MOFI’s Corporate Governance Forum, Edun noted that the US, which is at the centre of the tariff war, had, on April 2, announced that it would exempt mineral exports, including oil.
“Therefore, it’s the price effect, the oil price effect that may affect Nigeria. And it is the job and responsibility of the economic management team of President Bola Ahmed Tinubu, amongst others, to look at the various scenarios that might play out.
“There’s global uncertainty at a huge level, so nobody knows exactly what will happen- the announcement that has been made. We’re not sure what will be delayed, what will be reversed, or what will be implemented.
“So, it is not an announcement that the budget is being reviewed. It’s an announcement that it is our responsibility to look at the various scenarios and options and advise government accordingly.”
Earlier in his address at the event themed, “Ensuring Value Creation in State Owned Enterprises Through Better Corporate Governance,” Edun highlighted plans to look at budget adjustment, expenditure prioritisation as well as innovative non-debt financing strategies.
According to him, Nigeria had recorded a trade surplus in the last three years (2022-2024) with the US.
“Nigeria-US Trade has been in surplus in the last 3 years (2022-2024). Nigeria’s exports to the US were N1.8 trillion, N2.6 trillion and N5.5 trillion in 2022-2024, respectively.
“Fortunately, oil and mineral exports accounted for 92 per cent. Implying oil and minerals exports amounted to N5.08 trillion in value while non-oil was just N0.44 trillion
“Consequently, the tariff effect on exports is negligible if we sustain our oil and minerals export volume.
“The adverse effect on Nigeria will be through oil price plunge. We are intensifying efforts to ramp up crude oil production to curtail any price effect
“We are also focusing on non-oil revenue mobilisation by FIRS and Customs, budget adjustment and prioritisation where possible, and also and innovative non-debt financing strategies,” the minister said.
On MOFI’s focus on good corporate governance, the minister noted that at a time when nations across the globe were contending with economic uncertainties, financial vulnerabilities, and the demand for structural reform, the discourse on corporate governance assumes an even greater relevance.
“The interplay between economic performance and corporate governance is neither incidental nor superficial. Instead, it constitutes the bedrock for establishing sustainable development, investors’ confidence, and institutional integrity.
“In this context, it is imperative that we not only discuss the state of our economy but also underscore the transformative role that sound corporate governance can play in fostering resilience, efficiency, and long-term value creation,” he said.
According to him, notably, State-Owned Enterprises (SOEs) form a critical component of the national economic framework as they wield considerable influence across key sectors, including energy, infrastructure, telecommunications, and financial services.
“However, their potential to drive economic expansion, job creation, and industrial growth has often been constrained by inefficiencies, poor financial stewardship, and, in some instances, governance deficiencies,” he said.
