By Engr Alexander Elemo, MNSE (Nig), FIEAust (Aus), & CPEng (Aus).
The United States’ recent imposition of tariffs—some exceeding 100%—has sent
ripples through global trade, particularly impacting the mining and minerals sectors.
While these tariffs aim to bolster domestic industries, they have also disrupted
international supply chains and trade dynamics. For Nigeria, a nation rich in solid
minerals yet striving to enhance its mining sector, these developments present both
challenges and opportunities.
Global Impacts of US Tariffs
The escalation of US tariffs, especially those targeting Chinese imports, has led to
significant shifts in the global mining landscape. BHP’s CEO, Mike Henry,
highlighted that such tariffs could have a “significant” indirect impact on the global
economy, potentially slowing growth and fragmenting trade environments.
Furthermore, China’s retaliatory measures, including export restrictions on rare earth
elements, have intensified supply chain vulnerabilities, particularly in sectors reliant
on these critical mineral.
These developments underscore the interconnectedness of global trade and the
cascading effects that protectionist policies can have across industries and borders.
Figure 2: -US Global Tariff Impact Mapping – Courtesy Statista
Nigeria’s Perspective: Challenges and Opportunities
Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, views the current tariff landscape as a potential catalyst for positive change. He suggests that the US
tariffs could serve as a “blessing in disguise” for African economies, urging a shift
towards strengthening intra-African trade and reducing dependency on external
markets.
This perspective aligns with the broader vision of leveraging regional partnerships and
the African Continental Free Trade Area (AfCFTA) to foster economic resilience and
growth within the continent.
Figure 2: – Top Minerals Produced in Nigeria by State – Courtesy Voronoi
Strategic Responses for Nigeria’s Solid Minerals Sector
To navigate the complexities introduced by global tariffs and to harness emerging
opportunities, Nigeria can consider the following strategic approaches:
1. Enhancing Intra-African Trade: By capitalizing on the AfCFTA framework, Nigeria can expand its mineral exports to neighbouring countries, fostering
regional economic integration, and reducing reliance on traditional Western
markets.
2. Promoting Value Addition: Investing in local processing and beneficiation of minerals can increase the value of exports, create jobs, and stimulate industrial growth. This approach not only enhances economic returns but also positions Nigeria as a hub for high-quality mineral products.
3. Attracting Foreign Investment: The current global trade realignments present an opportunity for Nigeria to attract investors seeking stable and resource-rich environments. By offering favourable policies and infrastructure support, Nigeria can become a preferred destination for mining investments.
4. Strengthening Policy and Regulatory Frameworks: Implementing clear, consistent, and investor-friendly policies can boost confidence in Nigeria’s mining sector, encouraging both domestic and international stakeholders to engage more actively.
Conclusion
While the US tariffs introduce certain challenges, they also open avenues for Nigeria to reassess and revitalize its solid minerals sector. By focusing on regional
collaboration, value addition, and strategic investments, Nigeria can transform these
global trade shifts into a springboard for sustainable economic development.
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