Nigeria –US bilateral trade hits $10. 6bn in 2022—American Diplomat
Maureen Aguta
Nigeria’s bilateral trade with the United States of America (USA) exceeded $10.6 billion in 2022, even as the U.S. foreign direct investment is estimated at about $5.6 billion.
To this end Nigeria has been described as the US second-largest trading partner in Africa. Its partnership is increasingly technology-driven, with significant investments in Nigeria’s tech ecosystem and collaborative efforts to tackle global challenges in education, healthcare, agriculture, and other key areas.
U.S. Mission Commercial Counselor Julie LeBlanc stated this in her keynote address t the BusinessDay Africa Trade and Investment Summit on Thursday in Lagos.
She said that the U.S. Mission to Nigeria is particularly optimistic about the future of U.S.-Africa trade and investment relations; even as it is actively collaborating across U.S. government departments and with its African partners.
LeBlanc disclosed that the U.S. Government’s contribution of $160 million to support the African Continental Free Trade Area exemplifies its commitment to the trade bloc. She said the funding supports the development of digital trade and investment protocols, stakeholder engagement across Africa, and trade facilitation efforts. “Our focus is on expanding trade in goods and services, digital trade, and supporting the Women and Youth Protocol of the African Continental Free Trade Area.”
LeBlanc further disclosed that when President Biden co-hosted the 2023 African Growth and Opportunity Act (AGOA) Forum with South Africa in Johannesburg, he expressed strong support for the timely reauthorisation and modernisation of AGOA. This initiative, according to her, presents an opportunity to adapt AGOA to the modern economic landscape, recognising the dynamic changes in Africa and the global economy. She affirmed that while U.S. Congress will ultimately decide the future of AGOA post-2025, the Biden-Harris Administration is committed to its timely reauthorisation and improvement.
According to the U.S. Diplomat, beyond AGOA, the U.S. has initiated several programmes to enhance trade and investment with African countries, such as the Strategic Trade and Investment Partnership with Kenya and the $15.7 billion in new investments announced at the U.S.-Africa Business Forum. Prosper Africa is another initiative, uniting services from across the U.S. government to facilitate business in U.S. and African markets.
Under the Partnership for Global Infrastructure and Investment programme, the U.S. is collaborating with the EU to support infrastructure development in Angola, Zambia, and the DRC, particularly focusing on the Lobito Corridor. This partnership is a testament to our commitment to unlocking the enormous potential of sub-Saharan Africa.
LeBlanc said the Biden-Harris Administration’s launch of the Digital Transformation with Africa (DTA) initiative at the U.S.-Africa Business Forum exemplifies the country’s commitment to this partnership. “The DTA aims to expand digital access, enhance U.S.-Africa commercial relations, and strengthen digital environments in alignment with the African Union’s Digital Transformation Strategy. This initiative underscores a collaborative approach – Digital Transformation “with” Africa, recognizing the continent’s significant contributions to the global stage.”
According to LeBlanc, the U.S. government’s investment of $350 million in digital programming, with plans to invest millions more, reflects its dedication to this initiative. “The DTA will facilitate over $450 million in financing, harnessing the resources of 18 U.S. government departments and agencies, and partnering with African governments, the private sector, and civil society.
“As we look to the future, we see Nigeria as a key leader on the continent and a vital partner in advancing our shared values. What benefits Nigeria, benefits Africa and, indeed, the entire world,” she said.