NACC: Nigeria AGOA Extension 2028 Offers Export Opportunity

• The African Growth and Opportunity Act (AGOA) has been extended by the US until December 31, 2028, preserving duty-free access for Nigeria and 31 other sub-Saharan African nations.
• The Nigerian-American Chamber of Commerce (NACC) welcomed the extension, emphasizing the need for Nigeria to diversify its exports beyond oil into sectors like agriculture, textiles, and manufactured goods.
• NACC urged the Nigerian government and private sector to address domestic bottlenecks such as port inefficiencies and compliance with international standards, including forced labor regulations.
• Despite being the second-largest AGOA beneficiary, Nigeria has underutilized the program, prompting calls for urgent action to maximize the benefits of the extended period.
• The NACC also advocated for stronger US-Nigeria commercial partnerships and continental coordination to strengthen Africa's position in future trade discussions.

This extension provides Nigeria with a critical window to diversify its export base beyond crude oil, addressing long-standing structural impediments and proactively engaging on international trade standards.

The United States has officially extended the African Growth and Opportunity Act (AGOA) through December 31, 2028, a move welcomed by the Nigerian-American Chamber of Commerce (NACC). This extension, formalized by US President Donald Trump's signing of the Continuing Appropriations and Extensions Act, 2027, ensures continued duty-free access to the American market for Nigeria and 31 other sub-Saharan African countries. The legislative measure garnered significant bipartisan support, passing the US Senate with 90 votes to six and the House of Representatives with 340 votes to 54.

The NACC, through a statement from its Deputy President Ehi Braimah, on behalf of National President Alhaji Sheriff Balogun, highlighted the significant opportunity the Nigeria AGOA extension 2028 presents for strengthening Nigeria's export base and attracting new investment. Despite being the second-largest beneficiary of AGOA, Nigeria has historically underutilized the program, particularly by remaining heavily reliant on oil exports. The Chamber stressed that the 28-month extension provides a critical window for Nigeria to move beyond its traditional oil-centric economy.

This extension provides Nigeria with a critical window to diversify its export base beyond crude oil, addressing long-standing structural impediments and proactively engaging on international trade standards. NACC specifically urged a strategic shift towards agricultural products, textiles, processed foods, and manufactured goods, where Nigeria possesses inherent advantages and the potential to compete effectively in the US market. This focus on Nigeria export diversification US is essential for maximizing the benefits of the extended duty-free access.

To fully capitalize on the extended AGOA provisions, the NACC has called for urgent, coordinated action from the Nigerian Federal Government, the private sector, and state governments. A primary focus must be the removal of domestic bottlenecks that impede exporters, including inefficiencies at ports, challenges in standards compliance, and logistical hurdles. These issues significantly slow shipments, escalate costs, and diminish the overall competitiveness of Nigerian businesses in the global marketplace.

Furthermore, the NACC encouraged the Nigerian government to engage constructively with Washington on various trade-related concerns, including critical issues surrounding forced-labor compliance. Such engagement is vital for protecting Nigeria's continued access to the US market and fostering stronger confidence between the two nations, ensuring robust US-Nigeria trade opportunities. The Chamber also emphasized the importance of greater continental coordination, urging Nigeria to collaborate closely with the African Union and leverage the African Continental Free Trade Area (AfCFTA) framework to bolster Africa's collective stance in discussions concerning the modernization and future trajectory of AGOA. The NACC itself committed to facilitating stronger commercial relationships between Nigerian producers and American buyers, while also advocating for a lasting successor to AGOA that serves mutual interests.

Lawyers and compliance officers advising Nigerian businesses should immediately assess the extended AGOA provisions to identify new duty-free export opportunities to the US market. This includes advising on product diversification into non-oil sectors, ensuring compliance with US import standards (e.g., forced labor regulations), and navigating domestic logistical and regulatory bottlenecks to maximize competitive advantage during this extended period.

Source: Original reporting via NACC statement