The Nigerian-American Chamber of Commerce (NACC) has expressed concern over the United States’ imposition of a new 14% tariff on Nigerian exports under the African Growth and Opportunity Act (AGOA). This development threatens the duty-free trade benefits previously enjoyed by Nigerian exporters.
NACC President Oluwatoyin Akomolafe highlighted that the additional tariff could significantly hinder Nigeria’s export potential to the U.S. He emphasized that the chamber plans to engage with the U.S. government through meetings and memoranda to negotiate more favorable trade terms for Nigeria. Akomolafe stressed the importance of reducing Nigeria’s reliance on oil exports and diversifying into other sectors to mitigate the impact of such tariffs.
The AGOA, established in 2000, was designed to provide Sub-Saharan African countries, including Nigeria, with duty-free access to the U.S. market for thousands of products. However, the recent imposition of tariffs by the U.S. administration has raised concerns about the future of this trade agreement. Analysts suggest that these tariffs indicate a shift towards more protectionist trade policies, which could jeopardize the renewal of AGOA, set to expire in September 2025.
In response to these challenges, the NACC has been proactive in seeking solutions to enhance Nigeria’s trade relations with the U.S. The chamber has organized trade delegations and encouraged sector groups to embark on missions aimed at promoting Nigeria’s interests. Additionally, the NACC has entered into partnerships, such as the memorandum of understanding with the United States-Africa Trade Desk (USATD), to establish frameworks for cooperation and improve market access for Nigerian enterprises.
Despite the opportunities presented by AGOA, Nigerian exporters have not fully capitalized on the benefits. NACC officials have pointed out that a lack of information and government support has hindered effective utilization of the trade agreement. They advocate for increased awareness and capacity-building initiatives to enable Nigerian businesses to take full advantage of AGOA’s provisions.
The imposition of the 14% tariff underscores the need for Nigeria to diversify its export base and strengthen economic cooperation with international partners. The NACC remains committed to advocating for favorable trade policies and supporting Nigerian businesses in navigating the evolving global trade landscape.
