The Consul-General of the United States in Lagos, Will Stevens, has revealed that Nigeria and the U.S. maintain a robust $10 billion annual trade relationship, marking both countries as equal trade partners. Stevens made this announcement during the opening ceremony of the African Growth and Opportunity Act (AGOA) workshop, co-hosted with Prosper Africa in Lagos on Monday. The event was designed to equip Nigerian export-ready businesses, the Nigeria Customs Service, and other key stakeholders with the tools to fully utilize AGOA and expand trade between the two nations.
Stevens stated that the trade relationship between the U.S. and Nigeria is “incredibly balanced,” with roughly $5 billion worth of trade flowing in each direction. However, he noted that $3.8 billion of Nigerian exports to the U.S. under AGOA are oil-related products, raising concerns about the lack of diversification in Nigeria’s export base. “The oil and gas sector represents less than 8% of Nigeria’s GDP, so where is the rest of your economic activity, and why is it not being exported to the United States?” Stevens questioned.
He highlighted that AGOA offers Nigerian exporters unfettered access to the U.S. market, which accounts for 27% of the global economy. With major states like California and Texas being some of the world’s largest economies, Stevens emphasized the potential for Nigerian businesses to tap into this vast market. “Getting access to the U.S. market duty-free is like gaining access to a quarter of the global economy,” he said.
Stevens also praised the U.S. government’s commitment to AGOA and Prosper Africa, an initiative aimed at increasing bilateral trade and investment. “Prosper Africa isn’t just about the U.S. selling to Africa; it’s also about helping African countries, including Nigeria, sell their products to the U.S.,” he explained. He urged Nigerian businesses to capitalize on the opportunity by improving their product standards and expanding into global markets beyond the U.S., such as Asia and Europe.
Echoing these sentiments, the Deputy U.S. Trade Representative for Africa, Osvaldo Gomez-Martinez, outlined the vast potential for Nigeria to diversify its exports. He noted that while oil dominates trade under AGOA, the future lies in expanding into other sectors such as manufacturing and agriculture. “Nigeria’s producers and manufacturers have a unique opportunity to gain access to the U.S. market duty-free, giving their products a competitive edge,” Gomez-Martinez said. He added that to realize this potential, Nigerian businesses must comply with U.S. regulations, meet market standards, and address logistical challenges.
Gomez-Martinez emphasized the importance of expanding Nigeria’s export base beyond oil to shield the economy from the volatility associated with the energy sector. “Diversifying Nigeria’s export base is essential if the country is to safeguard its economy and foster sustainable growth,” he advised.
At the event, the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Charles Odii, acknowledged the challenges facing Nigeria’s small and medium enterprises (SMEs) but expressed optimism about their growth prospects. He commended government efforts to support SMEs through financial resources, including a N200 billion fund for enterprises, and measures aimed at easing regulatory burdens on small businesses.
AGOA provides eligible sub-Saharan African countries with duty-free access to the U.S. market for over 1,800 products, alongside the more than 5,000 products already eligible under the Generalized System of Preferences program. Both Stevens and Gomez-Martinez reaffirmed the U.S.’s commitment to working with Nigeria to expand trade, create jobs, and foster economic prosperity in both nations.
