Trending

May 14, 2025, 7:08 AM



Nigerians Likely to Dump U.S. Products, Transfer Services as 5% Remitance Fee is Proposed


U.S. lawmakers have proposed a bill to impose a 5% excise tax on remittances sent outside its borders. Nigerians who…

New U.S. policies could affect remittance. Photo: Unsplash/Library of Congress

New U.S. policies could affect remittance. Photo: Unsplash/Library of Congress

U.S. lawmakers have proposed a bill to impose a 5% excise tax on remittances sent outside its borders. Nigerians who rely heavily on diaspora funds are at the top of this card. Numerically, the remittances that flow into Nigeria through the international money transfer operators (IMTOS) run into the billions annually.

The tax would apply to remittances sent by non-verified U.S. citizens, with verified citizens able to claim it as a credit.

This policy is part of a broader shift under President Trump’s administration, which has included stricter immigration measures, deportation efforts, and aggressive trade policies.

New policies and tariffs are not looking good in a country like Nigeria and are translating into higher costs for American electronics, agricultural machinery, software licenses, and even educational materials.

Data from the National Bureau of Statistics (NBS) show that the average price of an imported American skincare product is up by 45% and growing since the initial tariffs. Foreign-branded lotions, shampoos, and makeup are less accessible for middle-income earners.

There is clearly a major shift in the interest in made in U.S products — not to mention a shift in immigration, ongoing in Nigeria.

The options that may be available to Nigerians if the U.S. passes the propsed remitance bill are broad, including;

Adopt crypto and P2P platforms

Avoid U.S.-linked services

Shift to informal methods or goods transfers

Seek government and diplomatic intervention

Finding Alternatives for U.S. Products in Nigeria

The newly imposed US trade tariffs are starting to agitate consumers globally. It appears that Nigerians have begun to re-evaluate their reliance on American products. This trend, influenced by the ripple effects of former U.S. President Donald Trump’s tariff policies, will last a long time and impact new products daily.

Coupled with the naira’s instability and persistent foreign exchange challenges, many Nigerians are starting to seek alternatives, both local and international.

More so, entrepreneurs and consumers have started prioritising local solutions, from fashion and fintech to agriculture and entertainment. Nigerian-made clothing brands, agricultural tools, and processed foods are gaining popularity as quality improves and patriotic buying increases.

The Nigerian government is actively promoting local alternatives. In sectors like oil & gas, ICT, and construction, the government enforces local content policies that require companies to use Nigerian labour, materials, and services whenever possible.

These actions form a broader economic diversification plan under initiatives like Nigeria’s Economic Sustainability Plan (ESP) and National Development Plan (2021–2025).

This will also position Nigerians to appreciate the control and sustainability that using homemade products might bring.

Notably, while tariffs on Nigerian goods have increased, the U.S. recently struck a deal with China to reduce mutual tariffs. Hopefully, Nigeria could get a similar deal.

Summary

Thu May 15 2025


The explosion and a suspected attack on the Trans-Niger Pipeline, TNP, have warranted a state of emergency in Rivers State. President Bola Tinubu made the announcement Tuesday, where he also suspended the current administration as well as, instated a new leader, Vice Admiral Ibokette Ibas, for six months to run the affairs of the state.

A Nigerian presidential aide placed a verdict on a corps member, Rita, saying that she should face capital punishment for calling the president terrible. Rita was summoned by her NYSC LGA, and she is getting assistance from Omoyele Sowore and his lawyers.

Rita stands next to Sowore at Eti Osa LGA. Photo: Omoyele Sowore

X

Unlock News Faster ...Sign Up

Coming to Cinema


Netflix Naija


Recommended