The Association of Bureau de Change Operators of Nigeria (ABCON) has called on the Federal Government to strengthen economic partnerships with nations such as India, China, and African markets to counter the adverse effects of the 14% tariff imposed by former U.S. President Donald Trump on Nigerian exports.

This tariff hike has created significant challenges for Nigeria’s economy, particularly in terms of liquidity and foreign exchange stability.

Dr. Aminu Gwadabe, President of ABCON, emphasized the urgent need for Nigeria to diversify its foreign exchange sources.

He highlighted the country’s reliance on petro-dollar receipts as a mono-cultural economy and urged the government to explore partnerships with India, China, and African markets to expand the export base beyond oil.

“To this end, Nigeria, being a mono-cultural economy that relies heavily on petro-dollar receipts, should embrace more partners like India, African markets, and China in the export of its single and most important commodity,” Dr. Gwadabe stated.

Recommendations for Stability 

Dr. Gwadabe also urged the Central Bank of Nigeria (CBN) to compel commercial banks to channel their interbank proceeds to Bureau de Change operators to mitigate volatility in the foreign exchange market.

While commending the CBN’s swift response to the tariff imposition, Dr. Gwadabe expressed concerns about the long-term impact of the tariff hike, which he said would make Nigerian products less competitive in the U.S. market, leading to reduced exports and significant revenue losses.

Impact on the Naira 

The tariff hike has also exacerbated the depreciation of the Naira in the official market.

He commended the CBN’s consistent interventions in the foreign exchange market, which have helped address inflation, uncertainty, and volatility during a challenging period of policy reforms.

What you should know 

The Naira fell sharply on Monday, closing at N1,629.00/$1 in the official Foreign Exchange Market.