Nigeria gets AGOA extension, urged to boost exports

The Nigerian-American Chamber of Commerce has called on Nigeria to leverage the extension of the African Growth and Opportunity Act (AGOA) to boost non-oil exports and tackle domestic issues that impede market access in the United States. This call came after the United States President Donald Trump signed the Continuing Appropriations and Extensions Act, 2027, which extended AGOA until December 31, 2028.

The extension maintains duty-free access to the US market for Nigeria and 31 other sub-Saharan African countries, offering businesses better planning certainty. The NACC's Deputy President, Ehi Braimah, stated that the extension presents a chance for Nigeria to strengthen its export base and draw new investments. However, Balogun, the National President, emphasized the necessity of moving beyond oil and diversifying into sectors such as agriculture, textiles, processed foods, and manufacturing where Nigeria holds a competitive advantage.

The Chamber urged the Federal Government, private sector, and state governments to implement coordinated and practical measures during this period to address structural issues that have hampered Nigeria's utilization of AGOA benefits. They advocated for improving Nigeria's AGOA exports beyond crude oil by developing agricultural products, textiles, processed foods, and manufactured goods ready for the US market.

Additionally, they called for the removal of domestic bottlenecks affecting exporters, particularly challenges related to ports, standards compliance, and logistics, which could delay shipments, increase costs, and weaken the competitiveness of Nigerian businesses. The Chamber also urged Nigeria to engage with Washington on trade-related matters, including forced-labor compliance, to safeguard continued access to the US market and enhance bilateral trust.

Analysts projected that Nigeria's trade surplus would narrow as oil prices stabilize. The NACC pledged to connect Nigerian producers with American buyers and promote productive sector investments in Nigeria, emphasizing that the country's status as a significant AGOA beneficiary could be instrumental in expanding non-oil exports and enhancing its role in international trade.