The Manufacturers Association of Nigeria Export Promotion Group (MANEG) has expressed confidence in Nigeria’s continued participation in the African Growth and Opportunity Act (AGOA), a U.S. trade initiative offering duty-free access to the American market for eligible African nations. Despite the change in U.S. administration with Donald Trump’s inauguration, MANEG Secretary, Dr. Benedict Obhiosa, believes Nigeria remains in good standing under AGOA, citing the positive assessment of the program under the previous Biden administration. He downplayed concerns about potential termination of AGOA under Trump, predicting an extension rather than a complete scrapping of the program. Obhiosa highlighted the mutual benefits of AGOA, particularly in the apparel and agricultural sectors, where demand in the U.S. market remains strong for African exports. He emphasized that products from countries like Nigeria, not facing any sanctions or restrictions under AGOA, would continue to enjoy access to the U.S. market.
Obhiosa’s analysis of Trump’s trade policies suggests that the focus during his previous term was primarily on China, not African countries. While Trump’s “America First” stance emphasizes prioritizing the U.S. economy, Obhiosa believes there are still opportunities for collaboration with productive economies like Nigeria, particularly in emerging sectors such as electric vehicles where the U.S. relies on global supply chains for raw materials. He maintained that the U.S. market would remain accessible to Nigerian exporters, expressing confidence that Trump would not impose restrictions against African nations. This perspective underscores the potential for continued trade relations between the two countries despite the change in U.S. leadership.
While MANEG expressed optimism about AGOA’s continuation, MAN Director-General Segun Ajayi-Kadir cautioned about Nigeria’s limited benefits from the program due to a lack of competitiveness. Ajayi-Kadir stressed the need for Nigerian producers to improve product quality and meet international technical standards to effectively leverage AGOA. He pointed out issues like post-harvest losses and frequent rejection of Nigerian agricultural products due to subpar quality as significant obstacles. He argued that simply having access to the U.S. market isn’t enough; Nigerian products need to be competitive against alternatives available to American consumers. This internal critique emphasizes the need for domestic improvements to fully capitalize on AGOA’s potential benefits.
Despite these challenges, Ajayi-Kadir remains optimistic about Nigeria’s potential, citing the country’s abundant human and material resources. He advocated for a strategic “Nigeria First” approach, mirroring Trump’s “America First” policy, emphasizing the need to prioritize domestic interests in trade negotiations. This echoes the sentiment that Nigeria must leverage its resources and ingenuity to compete effectively in the global market. The combination of MANEG’s confidence in AGOA’s continuation and MAN’s internal critique highlights the dual nature of the situation: external opportunities exist, but internal improvements are crucial to fully benefit from them.
The overarching message from both MANEG and MAN emphasizes the importance of a proactive and strategic approach to trade. While AGOA offers a valuable pathway to the U.S. market, Nigeria must address internal challenges to maximize its participation. Improving product quality, minimizing post-harvest losses, and adhering to international standards are critical steps towards enhancing competitiveness. This proactive stance, coupled with a focus on “Nigeria First” principles, can ensure that the country effectively leverages trade opportunities and benefits from agreements like AGOA. The focus should not solely be on maintaining access to foreign markets, but also on strengthening internal capacities to compete effectively within those markets.
In essence, Nigeria stands at a crossroads in its trade relationship with the U.S. under AGOA. While the program’s continuation offers a window of opportunity, the country must address internal weaknesses to fully capitalize on its potential. Improving product quality, minimizing post-harvest losses, and meeting international standards are crucial for competing effectively in the U.S. market. By embracing a “Nigeria First” strategy focused on leveraging its resources and developing internal capacity, Nigeria can ensure its position as a key player in international trade and maximize the benefits of programs like AGOA. This proactive approach will not only strengthen the country’s economic position but also create a more sustainable and beneficial trade relationship with the U.S. and other international partners.
