The trade relationship between the United States and Nigeria is now worth $10 billion per year, according to Will Stevens, the U.S. Consul-General in Lagos, Nigeria.
Stevens shared this information at a workshop in Lagos focused on the African Growth and Opportunity Act (AGOA) and Proper Africa. The workshop’s goal is to help Nigerian businesses that are ready to export, along with customs officials and other key players, learn how to make the most of AGOA’s benefits.
What makes this partnership special is how balanced it is between both countries. As Stevens explained: “The United States and Nigeria have an incredibly balanced trade relationship almost 50-50 which means we are equal partners. So it’s almost a $10bn yearly trade relationship, about $5bn from the US to Nigeria and $5bn from Nigeria to the US. But $3.8bn of that in AGOA is oil-related products and we want to see more.”
While the trade is balanced, there’s a catch: most of Nigeria’s exports to the U.S. under AGOA are oil and gas products. This is surprising because oil and gas make up less than 8% of Nigeria’s economy. Stevens wondered why other Nigerian products aren’t being exported to the U.S.
The opportunity is huge – AGOA gives Nigerian businesses free access to the U.S. market, which makes up 27% of the world’s economy. To put this in perspective, Stevens noted: “I think Texas is the seventh largest economy, and New York is like the ninth largest economy.”
He added: “So when you get access to that US Market duty-free, sort of a unilateral trade concession that we are giving, you are getting access to a quarter of the global economy. So if you can get one per cent market shares in New York State, that’s bigger than almost the entire economy of Nigeria.”
Stevens emphasised that the U.S. is committed to this partnership through Prosper Africa, which brings together various U.S. government agencies to boost trade between Africa and the United States. As he put it: “It’s not just us selling our stuff to you but helping you sell your stuff to us. That’s the cool thing about Prosper.”
“We are focused on both parts. We know that as you can enter our market and create exports, you bring in hard currency, you raise the standards of the products that you are developing because if you can succeed in the U.S. market, you can succeed in the Asian market, you can succeed in the European market. So, please, think about how you can bring your business to the United States, how you can use AGOA, and make connections with each other.”
Source:norvanreports.com