Let the poor breeeffffffff!
Trump’s tariffs might stop you from getting a new car in 2025
Good morning to everyone except Trump and his tariffs. If there’s one person who knows how to stay in the news, it’s that guy. Today’s edition of The Big Daily might inspire you to stop delaying gratification and just buy that second-hand car while you can still afford it.
- Margaret
Word count: ~ 1, 000
Reading time ~ 3 mins
Let’s get into today’s edition:
Trump’s tariffs aren’t favourable for Nigerians
Your internet providers owe you improved network in three months
The Big Deal
Trump’s tariffs aren’t favourable for Nigerians
We haven’t caught a break since US President Donald Trump was inaugurated on January 20 because the man has been working working. For his latest trick, he has decided to impose new tariffs on goods imported into the US from countries like China, Canada and Mexico.
Starting today, February 4, there will be a 25% tax on imports from Canada and Mexico and a 10% tax on Chinese goods. Canada’s energy sector will pay a smaller 10% tax, but they’re not happy about it either.
He says the tariffs are necessary to fight illegal immigration and drug trafficking(two things he promised during his campaign), but Canada, Mexico, and China are planning what could potentially become a global trade war plan by imposing their own taxes on US goods.
And yes, this is our business because finance bros have warned that all these taxes could make everyday things more expensive for Nigerians—cars, steel, food, and everything in between. So, if your monthly budget is currently looking cute, just know that prices might misbehave soon.
Why is this a big deal?
Trump’s new tariffs might only seem problematic for the U.S. and the countries it is currently targeting, but Nigeria isn’t escaping the ripple effects. One of the biggest concerns is the cost of tokunbo cars. Over 60% of used vehicles in Nigeria are from the U.S. In 2024, Nigeria recorded an increase in second-hand car patronage, making it clear that rising inflation had turned tokunbos into the go-to option for Nigerians. When these tariffs take effect, buying a car could become even more expensive, and even tokunbo will no longer be as accessible to average-earning Nigerians.
Fuel prices are also on shaky ground. Nigeria still imports a lot of petroleum products like gas, oil, and motor spirits from the U.S. If tariffs make those imports more expensive, fuel prices could rise. This is an embarrassing effect to worry about, given that Nigeria is an oil-producing country itself. The country’s reliance on imported fuel has been a major cause for concern over the years and has remained that way because of the absence of functioning refineries. Even though we now have the Dangote Refinery, which is supposed to help soften the blow, the refinery’s impact won’t be felt immediately because it hasn’t hit its full capacity. Call us Captain Obvious, but any increase in fuel prices will affect everyday expenses, making inflation even worse than it already is.
The list of items that will be affected by Trump’s tariffs is long, obvious, and disturbing, but we wouldn’t even need to worry if Nigeria wasn’t so heavily dependent on imports. For instance, despite being the largest producer of cassava in the world, we are the 121st largest importer of cassava globally.
It might also surprise you to know that, as of 2023, one in every four litres of palm oil consumed in Nigeria was imported, costing the country over $600 million annually. And get this— Nigeria is also the world's fifth-largest producer of palm oil. We clearly shouldn’t be impacted by Trump’s tariffs if our leaders cared more about exportation than importation.
Chile, anyway, here we are, thanks to a very long record of bad leadership! It will take divine intervention to escape the effects of Trump’s tariffs in 2025.
Your internet providers owe you improved network in three months
Speaking of tariffs, remember how the Nigerian Communications Commission (NCC) approved a 50% increase in the tariff for telecom services on January 20, 2025? There’s a new update, and you might love it.
How it’s going
Your favourite telecom service providers swear that this hike will improve your network service in the next three months. Over the weekend, during a forum held by MTN Nigeria, Airtel Nigeria, and 9mobile, telecom industry leaders gave their word to Nigerians, even promising that improvements would be seen sooner than expected.
If this ends up happening, we have the Nigerian Communications Commission (NCC) to thank for insisting that these providers improve the quality of their services in three months. MTN and its competitors are already working to reduce that timeline. Apparently, every time a call drops or someone can’t browse, telecom companies lose money, so it’s in their best interest to improve things quickly now that they have the funds to do that.
But Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), wants you to know who to blame if they don’t fulfil the promise. He explained that external factors like fibre cuts, diesel theft, and battery theft from base stations can slow down their work. He made it clear that if these issues aren’t fixed, the three-month timeline set by the NCC may not lead to improvements.
The World Bank says that having better broadband internet is an advantage for the economy. For every 10% boost in internet access, a country’s economy grows by about 1.38%. For a country with a debt status of over ₦120 trillion, everything that can strengthen the economy is an absolute need.
We’ll come back to the status of this promise in May, but we hope it ages well.
This Week’s Big Question
“Are you voting in 2027 or choosing to face Nigerian lawmakers’ proposed punishment?”
Chosen’s response - “I should be unbelievably liquid in 2027, so I’ll gladly pay the ₦100k fine. Why should I vote if the president has already been decided before elections?”
You can also share your response here, and if it’s as interesting Chosen’s, we’ll feature it in the next edition.
The Big Picks
Suspends Proposed Protest Over Telecom Tariff Hike: The Nigeria Labour Congress (NLC) has put a pause on its planned protest against the 50% hike in telecom tariffs.
Tinubu Approves Establishment Of Environment University In Ogoni: President Bola Tinubu has officially signed a bill into law to establish the Federal University of Environment and Technology (FUET) in Ogoni, Rivers State, promising more support for the community.