Nigeria Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in nigeria, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Trade Agreements
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As of 2024, the United States remains one of the largest foreign investors in Nigeria, with significant investments in petroleum, mining, and wholesale trade. Nigeria is a major U.S. trading partner in Sub-Saharan Africa. In 2023, U.S. goods exports to Nigeria amounted to approximately $4.2 billion, making Nigeria a top export destination in the sub-Saharan Africa region. Key U.S. exports include vehicles, machinery, wheat, refined petroleum products, and plastics. Nigerian exports to the United States, valued at around $6.4 billion, primarily consist of crude oil, cocoa, and agricultural products such as cashew nuts.

Two-way trade between the United States and Nigeria reached over $11.2 billion in 2023, reflecting a steady growth trajectory in bilateral commerce, bolstered by stable energy prices and increasing diversification in Nigeria’s non-oil exports.

Regional Trade Agreements

Nigeria continues to emphasize economic diversification, focusing on expanding its agricultural, mining, and manufacturing sectors. Key industries like automotive assembly, cement, and textiles are benefiting from targeted development strategies.

The African Continental Free Trade Area (AfCFTA), ratified by Nigeria in December 2020, remains a cornerstone of regional integration. The agreement aims to eliminate tariffs on 90 percent of goods, promoting a freer exchange of goods and services across Africa. Full implementation of AfCFTA could boost Nigeria’s exports significantly, providing greater market access and reducing reliance on crude oil exports. AfCFTA must be reauthorized by the U.S. Congress in 2025.

International Trade Agreements

Nigeria and the United States both belong to several international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization. Nigeria also is an observer to the Organization of American States.

Nigeria has been a member of the World Trade Organization since January 1, 1995, having been a member of the General Agreement on Tariffs and Trade (GATT) since November 18, 1960. Nigeria ratified the WTO Trade Facilitation Agreement on January 20, 2017, and the amended WTO Agreement on Trade-Related Aspects of Intellectual Property Rights 1994 (TRIPS) Agreement on January 16, 2017. Conversations to reduce trade barriers in Nigeria are ongoing within these fora.

On May 18, 2000, the U.S. Congress passed the African Growth and Opportunity Act (AGOA) into law. AGOA is a trade program meant to establish stronger commercial ties between the United States and Sub-Saharan Africa. Nigeria is eligible for preferential trade benefits under the AGOA. Nigeria is the largest user of AGOA but 98 percent of exports under the program are petroleum products.

The Act establishes a preferential trade agreement between the U.S. and selected countries in the Sub-Saharan region. AGOA is reauthorized through September 2025. The Act authorizes the President to designate countries as eligible to receive the benefits of AGOA if they are determined to have established, or are making continual progress toward establishing, the following: 

  • market-based economies
  • the rule of law and political pluralism
  • elimination of barriers to U.S. trade and investment
  • protection of intellectual property
  • efforts to combat corruption
  • policies to reduce poverty, increasing availability of health care, and educational opportunities
  • protection of human rights and worker rights
  • and elimination of certain child labor practices. 

Bilateral Trade Agreements

Nigeria has bilateral investment agreements with 31 countries, 15 of which are in force. The country also has double tax treaties with 13 countries and is a signatory to 21 investment-related instruments.

In 2000, Nigeria and the United States signed a Trade and Investment Framework Agreement (TIFA). This agreement provides for dialogue on improving and enhancing trade and investment opportunities between the two countries.