*FG says Red Sea hostilities could disrupt global oil supply

U.S. tariffs imposed on Nigeria and six other African countries are unlikely to materially alter the economic outlook for the affected economies.

This is according to a report from Oxford Economics, which says the latest measures are far less disruptive than the broader trade actions announced by Washington last year.

The new tariffs, introduced under Section 301 of the U.S. Trade Act of 1974, took effect on July 24 as part of the Trump administration’s latest effort to tighten enforcement against goods allegedly produced with forced labour.

The measures apply tariffs of between 10 and 12.5 per cent on imports from 60 countries, with Nigeria, Algeria, Angola, Egypt, Libya, Morocco and South Africa all facing a 12.5 per cent rate.

The latest action replaces the temporary 10 per cent global tariff imposed under Section 122, which expired following a U.S. Supreme Court ruling earlier this year.

According to the Office of the U.S. Trade Representative (USTR), the move is intended to pressure trading partners to strengthen enforcement against forced labour in global supply chains, citing decades of diplomatic efforts that have failed to eliminate the practice.

Despite the tougher trade stance, Oxford Economics said the measures are unlikely to prompt significant revisions to its economic forecasts for the affected African countries.

It further noted that while the US effective tariff rate has increased to an estimated 9.2 per cent from 8.6 per cent, it remained well below the levels seen following the sweeping “Liberation Day” reciprocal tariff announcements in April 2025 and the revised tariff schedule introduced in August that year.

MEANWHILE, the Federal Government has expressed deep concern over the escalating hostilities between the Houthis in Yemen and the Kingdom of Saudi Arabia, warning that any disruption to navigation in the Red Sea could severely affect global oil supplies, maritime trade and the world economy.

Speaking at a press briefing in Abuja yesterday, the spokesperson for the Ministry of Foreign Affairs, Kimiebi Ebienfa, said Nigeria remained neutral in the conflict but urged all parties to embrace dialogue and diplomacy to prevent further escalation.

Ebienfa said the latest tensions in the Red Sea, coming amid the unresolved disruptions in the Strait of Hormuz and the prolonged Russia-Ukraine conflict, posed serious risks to global energy security and international commerce.

He noted that as a major oil-producing nation, Nigeria was particularly concerned that any blockade of the Bab al-Mandab Strait or sustained disruption of shipping lanes in the Red Sea would have “direct and severe consequences for global oil supply chains.”

The Federal Government warned that attacks on commercial vessels, higher insurance premiums, longer shipping routes around the Cape of Good Hope and rising freight costs were already driving up international crude oil prices.

Nigeria also sympathised with Saudi Arabia over attacks on its oil facilities, saying the volatility threatened energy security and disproportionately affected developing economies that relied on stable oil revenues and affordable energy imports.

While welcoming the cessation of hostilities between the United States and Iran after 13 days of conflict, the Federal Government called on the Houthis, Saudi Arabia, Iran and the United States to “exercise maximum restraint, prioritise dialogue, and work through established diplomatic and multilateral channels to resolve outstanding issues.”