The US and Nigeria deepen their $10bn annual trade relationship by leveraging AGOA to diversify Nigerian exports beyond the oil sector.
The United States and Nigeria maintain a robust $10 billion annual trade relationship, with a focus on increasing non-oil exports under the African Growth and Opportunity Act (AGOA).
This was revealed by the US Consul-General in Lagos, Will Stevens, during the opening ceremony of an AGOA workshop on Monday, aimed at educating Nigerian businesses and stakeholders on maximising the benefits of AGOA.
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Speaking at the workshop organised by Prosper Africa, Stevens highlighted the balanced nature of the US-Nigeria trade relationship, with both nations exchanging approximately $5 billion annually.
However, he noted that $3.8 billion of Nigeria’s exports under AGOA are oil-related, despite oil contributing less than 8% to Nigeria’s GDP.
Stevens urged Nigerian exporters to take advantage of AGOA’s duty-free access to the US market, which accounts for 27% of the global economy.
He emphasised that US states such as California, Texas, and New York offer massive economic opportunities for Nigerian businesses.
“If you can get one per cent market share in New York State, that’s bigger than almost the entire economy of Nigeria,” he pointed out, stressing the importance of diversifying exports beyond oil and gas.
AGOA offers African countries duty-free access to over 1,800 products in the US market, providing Nigerian businesses with a competitive edge.
Deputy US Trade Representative for Africa, Osvaldo Gomez-Martinez, also addressed the workshop, encouraging Nigeria to increase its non-oil exports.
He highlighted the potential of Nigeria’s manufacturing and agricultural sectors to capitalise on AGOA opportunities and strengthen the economy against external shocks.
Gomez-Martinez noted that diversification away from oil would safeguard Nigeria’s economy from volatility.
He advised Nigerian businesses to focus on complying with US market regulations, meeting standards, and overcoming logistical challenges to fully benefit from the AGOA framework.
The US remains committed to expanding bilateral trade under the Prosper Africa initiative, which aims to elevate trade between the US and African countries.
Prosper Africa facilitates the integration of African producers into global markets and promotes inclusive economic growth by supporting two-way trade and investment.
In attendance was the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, who acknowledged the government’s efforts to support small businesses.
He praised the allocation of N200 billion for enterprises, including N75 billion for small businesses and N50 billion in grants for nano-businesses.
The AGOA workshop, organised as part of the broader Prosper Africa initiative, represents a concerted effort to diversify Nigeria’s trade with the US, create jobs, and foster long-term economic prosperity in both nations.
With the right strategies, Nigerian businesses can significantly increase their exports to the US, contributing to the growth of both economies.
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