Will Stevens, the Consul-General of the United States Consulate in Lagos, has revealed that Nigeria and the United States share a $10 billion annual trade relationship. He made this known during the opening ceremony of an African Growth and Opportunity Act (AGOA) workshop in Lagos, organized by Prosper Africa.
The workshop aims to empower Nigerian export-ready businesses, Nigeria Customs Service, trade officials, and key stakeholders with the tools to fully maximize AGOA and enhance its utilization in Nigeria.
Stevens highlighted that the trade relationship between the two nations is balanced, with approximately $5 billion in exports from each side. However, he noted that $3.8 billion of Nigeria’s exports under AGOA consist of oil-related products, and urged a move towards diversifying exports beyond oil and gas. “The oil and gas sector makes up less than 8% of Nigeria’s GDP. So, where is the rest of your economic activity, and why isn’t it being exported to the U.S.?” he asked.
Stevens emphasized that AGOA offers Nigerian exporters duty-free access to the U.S. market, which accounts for 27% of the global economy. He pointed out that U.S. states like California and Texas alone represent some of the world’s largest economies. “By accessing this market, Nigerian businesses can tap into a quarter of the global economy. Securing even 1% market share in a state like New York would surpass the size of Nigeria’s entire economy,” Stevens explained.
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He reiterated the U.S. government’s commitment to the AGOA initiative and Prosper Africa, which aims to boost bilateral trade and investment. “It’s not just about us selling to you, but also helping you sell to us. That’s the key focus of Prosper Africa,” he said, adding that entering the U.S. market can elevate the quality of Nigerian products and expand their success into other markets, including Asia and Europe.
Deputy U.S. Trade Representative for Africa, Osvaldo Gomez-Martinez, also addressed the workshop, stating that AGOA provides a tremendous opportunity for Nigeria to expand its exports to the U.S. He highlighted that while oil dominates Nigeria’s exports under AGOA, there is a significant opportunity for the country to diversify into manufacturing and agriculture. “Diversifying beyond oil is crucial for Nigeria to safeguard its economy against volatility,” Gomez-Martinez stressed.
He advised that for Nigerian exporters to succeed in the U.S. market, they must meet U.S. regulatory standards, market expectations, and address logistical challenges. Gomez-Martinez reaffirmed the U.S.’s commitment to supporting Nigeria’s economic growth, promoting two-way trade, and fostering prosperity for both nations.
Charles Odii, Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), acknowledged the challenges faced by SMEs but commended their resilience. He thanked the Nigerian government for allocating N200 billion for enterprises, with specific funds for large, small, and nano-businesses, and mentioned efforts to ease government regulations that have hindered SME growth in the past.
AGOA allows eligible sub-Saharan African countries duty-free access to the U.S. market for over 1,800 products, in addition to more than 5,000 products already eligible under the Generalized System of Preferences. Prosper Africa, a U.S. initiative, aims to significantly increase trade and investment between the U.S. and Africa, promoting global supply chain security, job creation, and inclusive economic growth.
