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Nigeria, USA annual trade reaches $10bn

Will Stevens, Consul-General of the United States Consulate in Lagos, indicated that Nigeria and the US had a $10 billion annual commercial connection.

Stevens made the statement during the opening ceremony of the African Growth and Opportunity Act workshop with Proper Africa in Lagos, according to The Punch.

The workshop seeks to provide export-ready Nigerian enterprises, the Nigeria Customs Service, trade authorities, and other stakeholders with the knowledge and skills required to maximize the benefits of AGOA and improve its implementation in Nigeria.

Stevens stated that the US and Nigeria have an incredibly balanced trading relationship.

"The United States and Nigeria have an extremely balanced trade relationship, nearly 50-50, which implies we are equal partners. So it's virtually a $10 billion commercial connection each year, with the US sending $5 billion to Nigeria and Nigeria sending $5 billion to the US. However, $3.8 billion of that under AGOA is for oil-related products, and we would like to see more," he said.

He noted that, despite the two nations' balanced economic relationship, the oil and gas sector accounts for the majority of bilateral commerce under AGOA.

According to him, the oil and gas sector accounts for less than 8% of Nigeria's GDP, "so where is the rest of your economic activity, and why is it not being exported to the United States?"

He explained that AGOA gives exporters unrestricted access to the US market, which accounts for 27% of the global economy, noting that California alone is the world's third-largest economy.

"I think Texas is the seventh largest economy, and New York is like the ninth largest economy," he joked.

"So when you receive duty-free access to the US market, which is a unilateral trade concession from us, you gain access to a fourth of the global economy. So, if you can obtain one percent of the market in New York State, that is larger than practically the whole Nigerian economy," the consular-general continued.

He emphasized the United States' commitment to the AGOA effort, stating that one of the benefits of Prosper Africa is its capacity to bring together the whole US government.

Stevens noted that Prosper Africa promotes growth in bilateral commerce and investment between Africa and the US.

"We're not only selling our products to you; we're also helping you sell yours to us. "That's the cool thing about Prosper," he said.

"We are concentrating on both parts. We understand that by entering our market and creating exports, you bring in hard dollar and enhance the quality of the items that you are making because if you can succeed in the United States, you can succeed in Asia, and you can succeed in Europe. So, please think about how you can bring your business to the United States, leverage AGOA, and engage with one another," Steven said.

Earlier, Osvaldo Gomez-Martinez, Deputy US Trade Representative for Africa, noted that AGOA provides an excellent opportunity for African countries, including Nigeria, to enter the US market duty-free.

He emphasized that Nigeria, as one of Africa's major economies with a broad and fast expanding private sector, has the potential to significantly increase exports to the United States.

"While the oil sector has long dominated trade between our nations, accounting for about 98 per cent of Nigeria's $3.8bn exports under AGOA the future lies in expanding beyond this sector and embracing the full spectrum of AGOA eligible products," according to him.

Gomez-Martinez recommended that diversifying Nigeria's export base away from oil, and therefore boosting its sources of other inflows, is critical if Nigeria is to protect its economy from the volatility it is currently experiencing.

He noted that Nigeria's manufacturing and agricultural industries have considerable potential to diversify the country's export base through AGOA.

Mr Charles Odii, Director-General and Chief Executive Officer of Nigeria's Small and Medium Enterprises Development Agency, agreed that, despite some obstacles, Small and Medium Enterprises continue to function well.

AGOA grants eligible Sub-Saharan African countries duty-free access to the US market for over 1,800 products, in addition to the more than 5,000 products eligible under the Generalized System of Preferences program.

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