Onome Amuge
The United States is embarking on a shift in its economic engagement with Nigeria, moving definitively from aid to trade, according to Richard Mills Jr., the U.S. Ambassador to Nigeria.
In a recent address held at the Lagos Business School (LBS) themed “Toward a Robust U.S.-Nigeria Commercial and Investment Partnership”, Ambassador Mills underscored Nigeria’s crucial role in this evolving relationship, highlighting opportunities for mutual prosperity built on deepened commercial ties involving agriculture, digital economy and infrastructure.
Ambassador Mills unveiled a new commercial diplomacy strategy for Sub-Saharan Africa, spearheaded by the U.S. Department of State. “This strategy, I really do believe, marks a new chapter in US-African relations. It is a strategy rooted in a goal of expanded economic opportunity, deepened commercial engagement, which we believe will launch our mutual prosperity,” he stated.
This new approach, according to him, views African nations, particularly Nigeria, as capable commercial partners, with the Ambassador’s primary directive from Washington being to increase trade, increase investment, increase business linkages between both countries.
To achieve this, the U.S. Department of Commerce, in collaboration with Nigeria’s Ministry of Industry, Trade and Investment, signed a Commercial and Investment Partnership (CIP) agreement last year. This five-year Memorandum of Understanding prioritises three key pillars: agriculture, the digital economy, and infrastructure. Nigeria is one of only five African nations to have such an agreement with the U.S.
The CIP aims to establish working groups with private sector representatives from both nations to identify and address non-tariff barriers to trade and other regulatory challenges which have for too long, dampened two-way trade and investment.
The ambassador conveyed confidence in this process, asserting, “I firmly believe that instituting this process here in Nigeria will create new opportunities, new jobs, boost innovation and unlock some new opportunities for all of us.”
Speaking on the existing strength of the bilateral relationship, Ambassador Mills noted that Nigeria is currently the United States’ second-largest trading partner in Africa, with two-way trade in goods and services reaching $13 billion in 2024. This is as U.S. foreign direct investment in Nigeria also saw a 5.5 per cent increase to $6.5 billion in 2023.
A major focus of the renewed partnership, Ambassador Mills stressed, is leveraging the Nigerian diaspora. Beyond the $20 billion in annual remittances, the diaspora is seen as vital for reshaping perceptions of Nigeria as an investment destination.
“The real voices that can do that are the Nigerian Americans who come back and forth every year, and can tell others in the US business community, can tell the US media, Nigeria is an opportunity waiting,” he said.
On trade impediments, Ambassador Mills acknowledged the challenges faced by Nigerian agricultural exporters in meeting U.S. phyto-sanitary standards and expressed hope that the CIP would streamline these processes.
He cited U.S. concerns over Nigerian tariffs on agricultural products, suggesting these barriers may not be optimal for Nigeria’s food security. He clarified that recent U.S. tariffs on imported goods were designed to recalibrate trade relationships rather than penalise, and noted that roughly 97 per cent of Nigerian exports to the U.S. remain exempt.
Addressing the critical issue of governance, Ambassador Mills underscored that while the U.S. supports good governance, the primary responsibility for fostering accountability among Nigerian policymakers lies with Nigerian citizens themselves.
Regarding China’s growing commercial presence in Nigeria and across Africa, Ambassador Mills was categorical that the U.S. does not seek to force nations to choose sides. He noted that instead, the U.S. advocates for a level playing field where every nation makes informed decisions about its economic partners, ensuring transparency and adherence to international standards. He emphasised the distinct advantages offered by U.S. businesses, including access to the world’s largest capital market, transparent supply chains, and commitment to labour and environmental rights.
