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With the annual trade volume between Nigeria and the United States reaching $10 billion, the United States Agency for International Development (USAID) is working in partnership with the Federal Government to facilitate greater earnings for Nigerians through exports utilizing the African Growth and Opportunity Act (AGOA). The Act, which became law in May 2000, is part of U.S. trade policy and grants special access to the U.S. market for qualifying exports from Nigeria and other countries in Sub-Saharan Africa.

In an interview with The Nation, USAID/Nigeria Mission Director, Melissa Jones  noted that while  United States and Nigeria have an incredibly balanced trade relationship,  $3.8billion  of the trade figure  was   achieved through  AGOA and  oil-related products . She spoke at the sidelines of AGOA workshop for the Apparel/Textiles Sector in Lagos yesterday. She noted that majority of Nigeria’s US-bound exports comprise mostly crude oil.

During 2000-2022, Nigeria exported $277 billion worth of oil to the US under AGOA.

 She however, noted that the US government wants to see more to see Nigerians export more agricultural and textile products to the United States using the AGOA window.

She stated: “N1.2 trillion worth of agricultural products were exported from Nigeria. Just a figure of this figure is AGOA.

Most of the AGOA exports from Nigeria is from the oil sector. That is why we are doing this. The US government is partnering with Nigerians, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and  the  Nigerian Export Promotion Council,(NEPC) to ensure the untapped market is explored. To make more people aware of AGOA.

She expressed that AGOA presents a valuable opportunity that remains untapped for Nigeria’s non-oil exports. She highlighted that to gain access to the benefits of the Act, participating nations are obligated to comply with specific criteria outlined by the US government.

Her words: “One of the main challenges is the lack of awareness and understanding of how AGOA works. The oil industry understands the power of AGOA. Many Nigerian businesses, especially in sectors such as textiles and apparel, either do not know they are eligible or aren’t sure how to meet US market standards.

Our job in USAID is to share that knowledge to ensure there are capacities for manufacturers to explore these opportunities. There are markets for them in the US. We have to get all the companies here to understand all the various processes involved in AGOA and ensuring that they are able to get certified on all the requirements. “

She explained that AGOA gives exporters unfettered access to the US market, which represents 27 per cent of the global economy, stressing that the State of California is the third largest economy in the world.

She highlighted that there was a huge export market for Akwa Ibom Soups in California.

She mentioned that the US was committed to the AGOA initiative adding while people are expecting to see the programme end soon, there are likelihood of the review of existing legislation to ensure that there is a mechanism in place to continue to boost exports from Nigeria to the US.

She said the US government   is also using Prosper Africa programme to help grow bilateral trade and investment between it and Africa.

On what the government can do to foster a more supportive environment, she indicated: “The Nigerian government can play a critical role by creating an enabling environment for businesses. This can include simplifying export procedures, improving infrastructure such as roads and ports and offering incentives for companies that are ready to export. Additionally, the government can work with trade organisations and development partners to ensure the businesses are aware of AGOA benefits and receive the necessary support to meet US standards. There are also logistics challenges such as access to financing, navigating complex export procedures and overcoming infrastructure gaps, which make it difficult to compete globally. For example, inconsistent trade policies and delays in export processes can discourage businesses from pursuing international trade opportunities under AGOA.”

Earlier, the Speaker, House of Representatives, Tajudeen Abbas  said the Federal Government was working on reviewing existing legislation to enable Nigerians explore opportunities available through programmes  such as AGOA.

According to him, the Federal Government supports initiatives AGOA as it can  play a pivotal role in fostering two-way trade relationships that empower Nigerian economy  and  the growth of export trade.

Speaking with The Nation, Senior Advisor, Transactions, Prosper Africa, Iman Kennerly, explained that Prosper is a US  government Presidential Initiative designed to scale and improve investment relationship between US  and markets in countries such as Nigeria.

He pointed out “ In Nigeria we have had a lot of engagements, utilising different platforms and programmes involving different industries including agriculture, financial services and businesses. We have seen companies that have been able to get fundings from the US private sector. We have also gotten fundings from US  government agencies .”

Exports of agricultural products account for a significant share of Nigeria’s non-oil exports to the U.S. Nigeria exports diverse number of agricultural products to the U.S., led by cocoa beans ($16million in 2022), nuts ($13million), plants used in perfumery ($12million), cereals ($7million). While most enter the U.S.duty-free on a  most-favored-nation (MFN)  basis, $7.4million  worth of agricultural exports (representing 10 per cent  of the total) benefited from AGOA preferences in 2022.

Nigeria exports a variety of spices to the U.S. , with one third falling under AGOA preference while the remainder enters the U.S. duty-free under standard MFN provisions.