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The extension of the African Growth and Opportunity Act (AGOA) to December 31, 2028, provides Nigeria another opportunity to diversify its exports away from crude oil and significantly increase agricultural products, textiles, processed foods and manufactured goods shipped to the United States, the Nigerian-American Chamber of Commerce (NACC) has said.
The Chamber said Nigeria, despite being the second-largest beneficiary of AGOA, has yet to take full advantage of the preferential trade programme and must use the 28-month extension to strengthen its non-oil export base and attract fresh investment.
NACC National President, Alhaji Sheriff Balogun, said the extension gives the country greater certainty to invest in production and expand exports to the US market.
“This extension gives Nigeria the certainty needed to invest and expand our exports. But we must use these twenty-eight months to move beyond oil. Nigeria is the second-largest AGOA beneficiary, yet we’re underutilising it.
“We need to diversify into agricultural products, textiles, processed foods and manufactures where we have real advantage,” Balogun said.
The Chamber spoke against the backdrop of the signing by United States President Donald Trump of the Continuing Appropriations and Extensions Act, 2027, extending AGOA through December 31, 2028.
The legislation preserves duty-free access to the US market for Nigeria and 31 other sub-Saharan African countries, giving businesses greater certainty in planning investments, production and exports.
According to NACC, the measure passed the US Senate by 90 votes to six and the House of Representatives by 340 votes to 54.
The Chamber commended President Trump and the US Congress, particularly Congressman Jason Smith and Senator Raphael Warnock, as well as the African Union, for their sustained engagement towards the continuation of AGOA.
It, however, stressed that the extension should be used to address structural problems that have prevented Nigeria from maximising preferential access to the American market.
NACC called on the Federal Government, state governments and the private sector to take coordinated and practical measures to expand the country’s AGOA exports beyond crude oil.
It particularly identified ports, standards compliance and logistics as bottlenecks that slow shipments, increase costs and weaken the competitiveness of Nigerian businesses.
The Chamber also urged the Federal Government to engage Washington constructively on trade-related concerns, including forced-labour compliance, to protect Nigeria’s continued access to the US market and strengthen confidence between the two countries.
It advocated greater coordination between Nigeria, the African Union and the African Continental Free Trade Area (AfCFTA) framework to strengthen Africa’s collective position in discussions on the modernisation and future of AGOA.
NACC also called for stronger US-Nigeria commercial partnerships through joint ventures, technology transfer and increased investment in productive sectors of the Nigerian economy.
Balogun said Nigeria could not afford to treat the extension as an opportunity to postpone necessary action.
“The next two years are a sprint, not a pause. NACC will connect Nigerian producers with American buyers and make the business case for a lasting successor to AGOA that serves all our interests.”
The Chamber said increased exports of value-added Nigerian products could contribute to job creation, industrial development, foreign exchange earnings and broader economic growth.
It said Nigeria’s position as one of AGOA’s leading beneficiaries provides a strong foundation for expanding non-oil exports and strengthening the country’s participation in international trade.
NACC consequently called for coordinated efforts by government, businesses, exporters, manufacturers, farmers, financial institutions and other stakeholders to ensure that Nigeria enters the next phase of US-Africa trade from a stronger position.
The Chamber said it would continue to facilitate commercial relationships between Nigerian producers and American buyers while providing advocacy, market intelligence, trade facilitation and networking support to businesses seeking opportunities under AGOA.
