Tarrif regime : Finance Minister urges resilience ,inter-Africa trade

The federal government on Wednesday urged African countries to be resilient over the retaliatory tariff regimes some countries have imposed owing to the ones the US President, Donald Trump, recently announced on non-oil exports.
Speaking at the 4th World Customs Organization Donors Conference for the West and Central Africa Region in Abuja, the Ministry of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the tariff as a call for African countries to trade among themselves.
He said the consequences of the tariff regime were still being studied all over the world.
“Now, we have the reciprocal tariff regime consequences, which are unfolding and being studied by one and all over the world.
“But this is a lesson for us that we need to trade among ourselves. We need to be resilient.”
The theme of the conference: “The Mobilization of Partners around Priority Projects in the WCO- WCA Region.”
Edun said that for greater integration and prosperity, the region must be mindful of the emerging challenges threatening its collective progress.
The minister further said the recent international developments, such as the imposition of reciprocal tariffs by the United States and the significant reduction in foreign assistance through USAID, have direct implications for the region.
According to him, eight countries across West and Central Africa, including Nigeria, Cameroon, and Côte d’Ivoire, have been impacted by these measures, with an average tariff of approximately 13.83% now levied on exports to the U.S.
He added that “Such actions not only increase the cost of our exports but also undermine efforts to boost trade competitiveness and diversify our economies.”
He further noted that the abrupt withdrawal of critical development assistance programs, particularly in health and education sectors, further compounds these economic headwinds.
The minister said these developments underscore the urgency of accelerating regional trade integration under the African Continental Free Trade Area (AfCFTA), strengthening domestic revenue mobilization, and investing in resilient customs and trade systems.
Continuing he also warned, “It is clear that we can no longer rely exclusively on external support; instead, we must build robust institutions and partnerships that are sustainable, inclusive, and regionally anchored.”
He said the implementation of the AfCFTA brings the hope of a transformative opportunity for the region, creating both new possibilities and responsibilities for customs administrations.
He stressed that the challenges and opportunities have made the role of Customs administrations more crucial yet increasingly complex, as they must continue to facilitate legitimate trade, secure borders, and collect revenue for national development.
Edun said for the region, this revenue function is particularly vital in Nigeria, customs collections have traditionally funded up to 15% of the government budget.
According to him, West and Central Africa represent a market of over 450 million people, with a combined GDP exceeding $900 billion.
He also said that intra-regional trade accounts for just about 12% of our total trade volume, compared to 60% in Europe and 40% in East Asia.
The region, he said, houses eight of the world’s 32 landlocked developing countries, which face average import costs nearly twice those of coastal nations.
Edun further noted that “Customs processing times across our borders average 12 days, significantly above the global best practice of less than 24 hours.
“These statistics highlight both our challenges and our enormous untapped potential. Suffice it is to say that modernizing and harmonizing our customs procedures, we could boost intra-regional trade by an estimated $50 billion annually, create millions of jobs, and significantly reduce poverty across our communities.”
Meanwhile, the Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, said the challenges the Customs in the region face were substantial but not insurmountable with the right technical support and partnerships.
He said that across the West and Central Africa region, customs administrations are grappling with several technical challenges that impede effective trade facilitation and revenue collection.
These, he said, include inadequate digital infrastructure for seamless processing of declarations and risk management.
He added that they include limited interconnectivity between national customs systems, hampering effective information exchange.
Adeniyi said the NCS has made significant strides in addressing these challenges through a series of interventions.
These interventions, according to him, have yielded measurable results: reduced clearance times, a 90% increase in revenue collection (exceeding targets by 20%), and improved compliance rates.