Rising concerns are mounting in Nigeria’s real estate sector over the potential impact of U.S. President Donald Trump’s escalating tariff policies.
President Trump’s proposed 14% tariff on Nigerian imports—part of a wider trade shift targeting over 90 countries—has triggered alarm across sectors.
Though currently paused for 90 days, the policy has sparked fears of construction delays, increased costs, and a contraction in new housing development.
Experts warn that reciprocal tariff hikes could severely impact developers focused on high-end projects.
Professor Austin Otegbulu, a real estate economist at the University of Lagos, notes that increased import costs would likely be passed on to buyers, fueling cost-push inflation. “Luxury apartments and industrial buildings would be hit hardest,” he explained.
Nigeria currently charges a 27% tariff on U.S. imports, while Trump’s administration plans to levy 14% on Nigerian goods.
According to the Nigerian Building and Road Research Institute (NBRRI), about 70% of building materials in Nigeria are imported.
Data from Volza shows China, the U.S., and Germany account for over 70% of Nigeria’s building material imports, with the U.S. contributing 20%.
Jumoke Oduwole, Minister of Industry, Trade, and Investment, has expressed concern over the potential impact on Nigeria’s non-oil exports and the competitiveness of emerging value-added sectors in the U.S. market.
The International Monetary Fund (IMF) has warned of global economic fallout from rising protectionism. Nigeria, though not a top U.S. trading partner, could face inflationary pressures and reduced foreign demand.
Meanwhile, the Federal Government is reviewing its 2002 National Trade Policy and exploring ways to mitigate import levies and promote local content.
As inflation climbs to 24.23% and housing costs rise, industry players fear the ripple effects may be long-lasting. While the full scope of Trump’s tariff regime remains uncertain, the luxury housing market is already bracing for impact.
