Trade Barriers: Nigerian SMEs Decry New $80 Duty on Shipments to United States

Nigerian small businesses are raising alarm over a new $80 mandatory prepaid customs duty on all postal shipments to the United States, a charge they say could cripple the country’s small-scale export market. The levy, announced by the Nigerian Postal Service (NIPOST), is a direct consequence of a recent Executive Order by the U.S. government that effectively ends duty-free exemptions for all postal shipments from around the world.

According to a public notice from NIPOST, the new directive, which took effect on August 29, 2025, requires all postal parcels, packages, and goods to be levied the flat fee at the point of acceptance in Nigeria. While the new policy is a global regulatory change, its impact is particularly harsh for Nigerian Small and Medium-sized Enterprises (SMEs) already navigating a challenging economic environment.

The National President of the Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, lamented the development, stating that the charge could make small-value exports completely unsustainable. “For many low-value goods, this charge may exceed the shipment’s actual worth, making small exports uneconomical,” Egbesola said. He warned that the new policy will discourage micro-exporters, reduce the competitiveness of Nigerian products in the U.S. market, and could lead to slower delivery times due to stricter customs checks.

The U.S. government has defended the move, which applies to parcels valued at or below $800, as a necessary step to combat tariff evasion and the smuggling of illicit goods and narcotics through international mail. However, this has placed a significant burden on postal operators worldwide, including NIPOST, which has assured customers that it is actively engaging with international postal bodies to mitigate service disruptions.

As a result of the new regulation, Nigerian businesses are being forced to explore alternative logistics solutions, such as private courier services, which may also come at a high cost. Analysts suggest that the development underscores the need for the Nigerian government to create more robust export support mechanisms and engage diplomatically to address what is increasingly being seen as a major trade barrier for its growing e-commerce and creative industries.