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.
The tariff hike has also exacerbated the depreciation of the Naira in the official market.
Dr. Gwadabe noted that the official exchange rate stood at N1,635 per dollar, compared to N1,570 per dollar in the parallel market.
He called on the CBN to ensure liquidity injections not only into the interbank market but also into the retail segment to meet the foreign exchange needs of small and medium-sized enterprises and invisible transactions.
Dr. Gwadabe described the trade tariffs imposed by the Trump administration as a “global tension raging like wildfire across jurisdictions.”
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.
