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How Nigeria Can Benefit from AGOA – USTR
- By Williams Ekanem
- Published May 17th, 2010
- Washington File
- Unrated
THE United States Trade Representative has outlined ways that Nigeria can benefit from the African Growth and Opportunity Act AGOA.
At an investment forum held recently in Washington D.C, Dr Laurie Agama, director of African Affairs at the United States Trade Representative (USTR) stated that Nigeria has not yet found its niche with AGOA because the two countries are still discovering the potentials in each other’s markets.
The USTR official pointed out however that there are several things Nigerians can do to increase investment and take better advantages of trade opportunities such as AGOA.
First, she said bodies, states and firms from Nigeria should hold send more trade and investment summits so as to create an awareness of the opportunities that exist. In this direction, she commended the “U.S-Imo State Business Opportunity Forum” that held in Washington D.C a fourth night ago.
Also, the USTR official stressed the need to develop national and state level AGOA strategies that are inclusive, explaining that this means, “Working with all stakeholders in Nigeria-government, labour, private sector, civil society, to determine where your competitive and comparative advantages lie outside of oil and gas.”
Pointing out that Nigeria has some of the most fertile land in the world, but only a small portion is now cultivated; if this situation is addressed, she said Nigeria could supply all of its own food needs and much of the sub-region as well.
To truly benefit from AGOA, Nigeria would need to move away from traditional exports of primary commodities and diversity into value-added products.
Additionally, she said Nigeria has a great responsibility in improving its current ranking in the Doing Business Report of the World Bank, which currently stands at 125 out of 183 countries surveyed for ease of doing business.
Said her, “improving Nigeria’s standing in the rankings would send a positive signal to investors interested in sectors other than oil and gas, that the government of Nigeria is proactively working to improve its business climate.”
As a competitor in the continent, she said Nigeria needs to take a special interest at its market by promoting good governance, investing in people and implementing difficult macroeconomic reforms.
The African Growth and Opportunity Act (AGOA) was signed into law on May 18, 2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets
Nigeria’s leading AGOA non-oil products to the US includes; Shea Butter, shrimps, apparel, cashew nuts, ginger, gum arabic, sesame seed, ethnic food (foodstuff), cocoa products, rubber, etc
Balance of trade between the US and Nigeria over the years has been in favour of Nigeria as it emerged the largest trading partner (in terms of US imports) in 2009.
Abdulsalam Usman of the AGOA Desk, Trade Department Federal Ministry of Commerce and Industry at a workshop in Abuja in 2009 listed the challenges of AGOA in Nigeria to include high transportation cost and poor trade facilitation system, difficulty in accessing finance and credit facilities by manufacturers and exporters, especially the SMEs, lack of adequate training and modern equipment in processing value -added agricultural products as well as weak infrastructure amongst others.
At an investment forum held recently in Washington D.C, Dr Laurie Agama, director of African Affairs at the United States Trade Representative (USTR) stated that Nigeria has not yet found its niche with AGOA because the two countries are still discovering the potentials in each other’s markets.
The USTR official pointed out however that there are several things Nigerians can do to increase investment and take better advantages of trade opportunities such as AGOA.
First, she said bodies, states and firms from Nigeria should hold send more trade and investment summits so as to create an awareness of the opportunities that exist. In this direction, she commended the “U.S-Imo State Business Opportunity Forum” that held in Washington D.C a fourth night ago.
Also, the USTR official stressed the need to develop national and state level AGOA strategies that are inclusive, explaining that this means, “Working with all stakeholders in Nigeria-government, labour, private sector, civil society, to determine where your competitive and comparative advantages lie outside of oil and gas.”
Pointing out that Nigeria has some of the most fertile land in the world, but only a small portion is now cultivated; if this situation is addressed, she said Nigeria could supply all of its own food needs and much of the sub-region as well.
To truly benefit from AGOA, Nigeria would need to move away from traditional exports of primary commodities and diversity into value-added products.
Additionally, she said Nigeria has a great responsibility in improving its current ranking in the Doing Business Report of the World Bank, which currently stands at 125 out of 183 countries surveyed for ease of doing business.
Said her, “improving Nigeria’s standing in the rankings would send a positive signal to investors interested in sectors other than oil and gas, that the government of Nigeria is proactively working to improve its business climate.”
As a competitor in the continent, she said Nigeria needs to take a special interest at its market by promoting good governance, investing in people and implementing difficult macroeconomic reforms.
The African Growth and Opportunity Act (AGOA) was signed into law on May 18, 2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets
Nigeria’s leading AGOA non-oil products to the US includes; Shea Butter, shrimps, apparel, cashew nuts, ginger, gum arabic, sesame seed, ethnic food (foodstuff), cocoa products, rubber, etc
Balance of trade between the US and Nigeria over the years has been in favour of Nigeria as it emerged the largest trading partner (in terms of US imports) in 2009.
Abdulsalam Usman of the AGOA Desk, Trade Department Federal Ministry of Commerce and Industry at a workshop in Abuja in 2009 listed the challenges of AGOA in Nigeria to include high transportation cost and poor trade facilitation system, difficulty in accessing finance and credit facilities by manufacturers and exporters, especially the SMEs, lack of adequate training and modern equipment in processing value -added agricultural products as well as weak infrastructure amongst others.
