The Consul-General of the United States in Lagos, Will Stevens, has highlighted the strong trade partnership between Nigeria and the US, revealing an annual trade volume of $10 billion between the two countries. He made this known at the opening ceremony of the African Growth and Opportunity Act (AGOA) workshop, held in Lagos, which was organized in collaboration with Prosper Africa.
Stevens noted that Nigeria and the US share a balanced trade relationship, with nearly equal contributions from both countries. “The United States and Nigeria have an incredibly balanced trade relationship, almost 50-50, with about $5 billion coming from the US to Nigeria and $5 billion from Nigeria to the US. However, $3.8 billion of that is from oil-related products, and we want to see more diversification,” Stevens said.
While the oil and gas sector continues to dominate Nigeria’s exports under AGOA, accounting for nearly 98% of trade, Stevens urged Nigerian businesses to explore opportunities beyond the energy sector. He stressed the importance of maximizing AGOA benefits, which provide duty-free access to the US market, representing 27% of the global economy.
“AGOA gives Nigerian exporters access to the US market, which includes some of the world’s largest economies. For instance, California is the third-largest economy globally, while Texas and New York are ranked seventh and ninth, respectively. Access to this market means a Nigerian business securing just 1% of New York’s economy would surpass the entire economy of Nigeria,” Stevens explained.
The US Consul-General emphasized that Prosper Africa is focused on fostering two-way trade between Africa and the United States, with an eye on helping African businesses thrive in the US market. “It’s not just about us selling to you; it’s about helping you sell to us. By entering our market and creating exports, you raise your product standards, attract hard currency, and gain a competitive edge in global markets, including Asia and Europe,” he said.
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Stevens also acknowledged Nigeria’s potential to significantly expand its exports to the US, particularly through AGOA-eligible products outside the oil and gas sector. He encouraged Nigerian businesses to leverage AGOA to access the US market and diversify the country’s export base.
Gomez-Martinez, another speaker at the workshop, underscored the urgency of diversifying Nigeria’s economy. He called for greater focus on the manufacturing and agricultural sectors to reduce dependency on oil exports. “Nigeria’s producers and manufacturers have a unique opportunity to gain duty-free access to the US market, giving their products a competitive advantage. However, this requires compliance with US regulations, meeting market standards, and addressing logistical challenges,” he noted.
The Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Charles Odii, also spoke on the resilience of Nigeria’s SMEs despite existing challenges. He commended the government’s allocation of financial resources, including N200 billion for enterprises, N75 billion for large businesses, N75 billion for SMEs, and N50 billion for nano-businesses. He also highlighted the establishment of the National Council of SMEs, which aims to improve the ease of doing business in Nigeria.
AGOA offers sub-Saharan African countries, including Nigeria, duty-free access to the US market for over 1,800 products in addition to 5,000 products already eligible under the Generalized System of Preferences (GSP) program. With continued US support, Nigeria is positioned to increase its trade with the US, creating jobs and boosting economic growth across both nations.
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