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The Nigerian government has called for an extension of the United States’ African Growth and Opportunity Act (AGOA) beyond its 2025 deadline.

The Speaker of the Nigerian House of Representatives, Hon. Tajudeen Abass, made the call on Tuesday while speaking during the AGOA training workshop organized by USAID and Prosper Africa for stakeholders in Nigeria’s Textile and Apparel industry.

Hon. ABBAS TAJUDEEN

Abass said AGOA has been crucial in fostering trade and economic development between Africa and the United States by providing African countries access to U.S. markets and allowing them to diversify their economies beyond raw materials.

He, however, noted that while Nigeria as one of the biggest beneficiaries of the policy has great potential to capitalize on the opportunities, many Nigerian businesses are still unaware of the program, thus limiting their chances of benefitting from it.

Emphasizing the need for awareness among Nigerian businesses, the Speaker said an extension of the program would allow more Nigerian and African businesses to take full advantage of it.

“We must increase knowledge and understanding of AGOA within our business community so that more Nigerian companies can take full advantage of this value-added framework.

“As we move forward, I urge the U.S. government to consider extending AGOA’s 2025 deadline.  

“This extension will benefit African economies and align with U.S. strategic interests by creating new markets and promoting regional stability.  

“The U.S.-Nigeria Parliamentary Friendship Group will advocate for this renewal, further strengthening our partnership,” he said. 

Speaking on why the workshop was being organized, the USAID Nigeria Mission Director, Melissa Jones, observed that Nigeria has gone through a lot of economic challenges including the hike in the price of fuel, high inflation, and food insecurity.

  • According to her, what would get the country out of the current challenges is the diversification of the economy.
  • She said this is why the AGOA workshop was focusing on the textile industry, which is capable of driving Nigeria’s exports beyond oil.

“The apparel and textile industry presents such an important opportunity, as I mentioned, to diversify, but also to create jobs and contribute to the inclusive growth of this country.  

“Prosper Africa has been so critical in bringing all of the U.S. government together to really help nations in Africa to move this forward,” she said. 

The African Growth and Opportunity Act (AGOA) is a U.S. trade policy enacted in 2000 to enhance market access for eligible sub-Saharan African countries, including Nigeria. Here are the key points you need to know about AGOA and its impact on Nigeria:

  • Purpose: AGOA aims to promote economic growth through trade and investment in sub-Saharan Africa by providing duty-free access to the U.S. market for thousands of products.
  • Eligibility: Countries must meet certain criteria, including progress towards a market-based economy, rule of law, and political pluralism.

Benefits for Nigeria

  • Market Access: Nigeria can export over 6,800 products to the U.S. without tariffs.
  • Economic Diversification: AGOA helps Nigeria diversify its economy beyond oil by promoting sectors like agriculture, textiles, and manufacturing.
  • Job Creation: Increased exports under AGOA can lead to job creation and economic growth.

Recent Developments

  • Extension Request: Nigeria is urging the U.S. to extend AGOA beyond its 2025 expiration to continue benefiting from the trade opportunities.
  • Workshops and Training: The U.S. has been conducting workshops to help Nigerian businesses better utilize AGOA, focusing on improving export quality and competitiveness.

Challenges

  • Awareness: Many Nigerian businesses are still unaware of AGOA and its benefits, limiting their participation.
  • Economic Volatility: Nigeria’s reliance on oil makes its economy vulnerable to global price fluctuations, highlighting the need for diversification.

Strategic Importance

  • U.S.-Nigeria Relations: Extending AGOA aligns with U.S. strategic interests by creating new markets and promoting regional stability.
  • Economic Growth: Continued access to the U.S. market under AGOA can support Nigeria’s economic growth and development
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