Under the tariff storm |Step into Africa (II): Nigeria leverages the China-Europe market and free trade zone construction to break through the dilemma
Global trade has been tremendously shaken by the unilateralism of the United States. The minimum tariff rate for all Chinese goods is 145%, and China's tariff rate for American goods has also been raised to 125%.
In today's changing global economic landscape, the Trump administration's tariff policies have triggered different chain reactions from all parties in the global industrial chain. At the same time, it has also allowed countries and business entities in the global trade chain to re-examine their industries and trade structures, so as to find opportunities for industrial transformation and upgrading in the process of responding to the tariff storm, and continuously consolidate their ability to cope with uncertainty.
However, in face of the current situation of intra-inverting and intensifying competition in the industry, "If you don't go overseas, you may be out" has become an industry consensus, and globalization has become the only way for corporate development, and the development of overseas markets has become an inevitable strategic layout for companies. Faced with the heavy tariffs from the US, how should Chinese companies break through the dilemma? Where is the chances to go overseas?
In this regard, RACC has specially write a series of articles on "Go to Africa" to focus on Africa, a potential continent, and help Chinese companies find new opportunities for overseas development in the global change.
Tariff shock-Transformation opportunity for Nigeria
Recently, the US heavy policy of imposing 14% tariffs on Nigeria has caused an uproar. According to High Times, Nigeria, the largest economy in the Trump era, is experiencing unprecedented geo-economic shocks when the iron curtain of tariffs shrouded the global trade system.
However, at the 14th Annual Investment Meeting 2025 (AIM Congress 2025) in Abu Dhabi, UAE, Dele Alake, the minister of Nigerian Mines and Steel Development Ministry, said that a series of recent tariff policies implemented by the United States could be an opportunity to "be blessed in disguise" for African countries. Alake said the U.S. tariff policy prompted African countries to re-examine their economic strategies and strengthen regional cooperation to respond to changes in the global trade landscape. He said African countries need to seize this opportunity to strengthen internal trade and value-added resources to achieve sustainable economic development.
At present, in the face of the pressure of US tariff war and global supply chain reconstruction, Nigeria is accelerating its strategy to leverage the construction of the China-Europe market and free trade zone to break through the dilemma. On the strategic sandbox of the Abuja Presidential government, the two breakthrough routes have gradually become clear: accelerate the construction of the China-Nepal Economic and Trade Corridor to the east; activate the African Continental Free Trade Zone (AfCFTA) to the south, increasing the proportion of intra-regional trade from 18% to 35%.
According to Nigeria's media, China and the EU, as important participants in global trade, are becoming Nigeria's first choice for seeking alternative cooperation. For Chinese companies, this is not only a golden window to explore the African market, but also a key opportunity to deepen the cooperation of the "Belt and Road" and seize the emerging growth poles.
As RACC knows, Nigeria has recently officially announced the "ECOWAS African Continental Free Trade Area (AfCFTA) Tariff Quotation Timetable for Goods Trade" and forwarded it to the AfCFTA Secretariat. The move comes ahead of the 16th Council of Minister’s Trade Conference scheduled for April 15 in Kinshasa, Democratic Republic of the Congo, marks an important milestone in Nigerian trade integration efforts.
The schedule of the communiqué lays the foundation for the implementation of zero tariffs for 90% of AfCFTA tariff projects, effectively positioning Nigerian goods to improve access and competitiveness in the African market; at the same time, this initiative provides clarity and certainty, confirming that Nigeria will give preferential tariff treatment to all eligible goods upon importation in accordance with the AfCFTA Agreement. This step not only conforms to Nigeria's regional trade commitments, but also strengthens the country's strategic role in shaping a single market on the continent.
China-Nepal renewal of currency swap agreement and industrial chain reconstruction
A new African strategy to break the US tariff war
The impact of US tariffs has pressed the "accelerator" for deepening cooperation between China and Africa.
According to the People's Bank of China on December 27, 2024, with the approval of the State Council, the People's Bank of China renewed the bilateral local currency swap agreement with the Central Bank of Nigeria and increased the currency to 3.28 trillion Nigerian nairas (about 15 billion yuan), an increase of nearly 25% from 2023, providing stronger local currency settlement support for bilateral trade.
This renewal not only lasts for three years, but also clarifies the "elastic quota expansion mechanism" for the first time. Nigerian President Tinubu bluntly stated when meeting with Chinese Foreign Minister Wang Yi: Increasing the scale of currency swaps will accelerate the development of Nigeria's infrastructure and deepen the strategic bilateral relations between the two countries.
Not only that, but more far-reaching significance lies in the fact that the agreement is included in the dual-track goal of "RMB Internationalization-Naira Regionalization" for the first time. Through the renewal of currency swap agreements, cooperation in manufacturing and infrastructure, China and Nepal are building a "new economic corridor" that bypasses the US dollar system and resists tariff barriers.
According to the latest trade report data for 2024 released by the Nigerian National Bureau of Statistics (NBS), China ranked first in Nigeria's largest import source country with imports of 14.14 trillion naira, an increase of 114% from 6.6 trillion naira in 2023. This not only breaks the Sino-Nepal trade record, but also reflects the strategic shift of Africa's largest economy in the reconstruction of global supply chains.
Mega Clima Nigeria: Golden Channel to explore the African Market
Nigeria, with a population of 210 million, is the most populous country and the largest economy in Africa. With its geostrategic status and resource endowment, it has become a new highland for the globalization of Chinese capital.
Although under the overall backward development pattern of Africa, Nigeria's leading position is more in a relative sense, that is, it stands out from other relatively backward countries. But the benefits brought by Nigeria's growing population and younger population structure will greatly promote the development of African services and manufacturing.
According to a report released by McKinsey, Nigeria will continue to maintain its position as the largest consumer market in Africa in the next decade and will contribute 15% of global new consumption. It is estimated that by 2025, the average annual consumption capacity of middle and upper Nigerians will increase by US$30 billion, with the main consumption areas being food, housing, education and transportation.
As for the HVAC field, in recent years, Nigeria's domestic hot climate, rapidly developing market economy and diverse sales channels have provided huge demand growth space for the air conditioning market. But as of now, Nigerian air conditioning market supply still depends on overseas imports, and China is its main source of imports, which has also created great opportunities for Chinese air conditioning companies, such as Haier, Midea, and Gree to layout the Nigerian market. The Mega Clima Nigeria 2025 provides a golden window for many Chinese companies to enter the African HVAC market.
MAY 20 to 22, 2025
Nigeria Refrigeration Exhibition (MEGA CLIMA NIGERIA)
From May 20 to 22, 2025, the 8th Nigeria International Air Conditioning Ventilation and Refrigeration Exhibition (MEGACLIMA) will be grandly held at the Lagos Convention and Exhibition Center. Based on more than ten years of cooperation with the organizer, our company is the China General Agent for this series of exhibitions. Welcome to call for consultation and registration.
★Exhibition time: May 20 to 22, 2025
Organizer: ELANEXPO Exhibition Group
Exhibition cycle: Once a year
Exhibition location: Landmark Centre Lagos, Nigeria
Mega Clima Nigeria Show is hosted by ELANEXPO Exhibition Group and is held once a year. It is the largest refrigeration exhibition in West Africa and an important way for global refrigeration and air conditioning companies to understand the new trends, new technologies and new products of the industry. MEGA CLIMA is a series of well-known African refrigeration exhibitions: Kenya (East Africa), Algeria (North Africa), and Nigeria (West Africa). It is the most important channel for developing the African refrigeration market and an important platform for Chinese companies to explore Nigeria and the entire African market. Each exhibition attracted a large number of exhibitors and visitors.
2024 West Africa (Nigeria) International Air Conditioning and Refrigeration Exhibition
Beijing Worlead Exhibition Group
In May 2024, nearly 200 companies from more than 20 countries around the world participated in the 7th Nigeria Refrigeration Exhibition, and well-known brands, such as Midea, Gree, LG, Dajin, Carrie, Trane, EMIS, YACSN, Viagra, York, Bizel, WEDA, PYGAR, Chemours, BosnaLG, kimmco, etc. were all unveiled. Bangladesh, Pakistan, South Korea, Malaysia and other countries organized purchasing groups to support the exhibition. As the general agent of the Mega Clima Nigeria, our company has organized more than 10 companies, including Juhua, Kaidi, Jinze to participate in the exhibition.
In May 2025, the RACC Organizing Committee will continue to serve as the general agent of China designated by the organizer of the Nigeria Refrigeration Exhibition, and will be the largest exhibition group in China for many years. It will provide high-quality services throughout the process to Chinese companies participating in the exhibition in Nigeria. Welcome to call for consultation.
Scan the QR code for consultation Tel: 15057139566 (same as WeChat)
Source: RACC Expo
