In a proactive step to shield Nigeria’s economy from potential external shocks, the Federal Government has inaugurated a special subcommittee to examine the possible repercussions of newly announced United States tariff measures.
The initiative comes amid concerns about how these actions may influence Nigeria’s fiscal landscape and oil-driven economy.
This was made public in a statement issued on Friday by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance.
According to the statement, the Economic Management Team (EMT), headed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, held a high-level meeting earlier this week with major government ministries and relevant agencies to deliberate on the issue.
The emergency meeting was primarily focused on understanding how these trade developments from the US could affect Nigeria’s fiscal stability and wider economic outlook.
“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,” the statement said.
Subcommittee’s Role and Composition
To ensure a data-driven response, the EMT established a subcommittee tasked with thoroughly analysing the implications of both the US tariffs and the recent volatility in global commodity prices.
Members of the subcommittee are drawn 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 (CBN).
“The subcommittee also held its inaugural meeting this week and will ensure it presents its findings to the full EMT without delay,” the statement added.
This action reflects the government’s commitment to implementing measures that protect the national economy against global uncertainties, particularly in light of fluctuating oil prices and shifting international trade policies.
Recent forecasts by JP Morgan, a leading global financial institution, warned of potentially severe outcomes for Nigeria, including capital flight and naira depreciation, if global oil prices continue to stay below the nation’s fiscal breakeven point—estimated at around $60 per barrels.
The bank noted that investor confidence had been shaken by the US tariff announcements.
Background and Broader Economic Strategy
Last year, President Bola Tinubu formed the Economic Management Team Emergency Taskforce (EET) to spearhead a consolidated economic recovery plan in response to pressing fiscal challenges.
The taskforce includes key economic figures such as Finance Minister Wale Edun, Central Bank Governor Yemi Cardoso, Power Minister Adebayo Adelabu, four state governors, and other stakeholders from the public and private sectors.
The establishment of the subcommittee is part of ongoing efforts by the administration to respond decisively to global economic risks.
The EMT is expected to use the subcommittee’s recommendations to shape policy interventions in the near to medium term, particularly to address challenges arising from international trade dynamics and oil market instability.
