The Nigerian government has called for the US African Growth and Opportunity Act (AGOA) to be extended beyond its 2025 deadline.
The Speaker of the Nigerian House of Representatives, Hontajudeen Abbas, made the call on Tuesday while speaking at the AGOA training workshop organized by USAID and Prosper Africa for stakeholders in Nigeria’s textile and apparel industry.
Mr. Abbas said AGOA is critical to promoting trade and economic development between Africa and the United States by providing African countries with access to the U.S. market and allowing them to diversify their economies beyond raw materials. He said that.
However, he said that although Nigeria, as one of the biggest beneficiaries of the policy, has great potential to capitalize on the opportunity, many Nigerian businesses are still unaware of the program and therefore do not have the opportunity to benefit from it. He pointed out that it is limited.
increase time for awareness The Chairperson emphasized the need for awareness among Nigerian businesses, saying the extension of the program would enable more Nigerian and African businesses to take full advantage of the program.
“We must increase knowledge and understanding of AGOA within the business community so that more Nigerian businesses can take full advantage of this value-added framework.
“As we move forward, I urge the U.S. government to consider extending AGOA’s 2025 deadline.
“This extension will benefit African economies and align with U.S. strategic interests by creating new markets and promoting regional stability.
“The U.S.-Nigeria Friendship Caucus advocated for this renewal, which will further strengthen our partnership,” he said.
Diversification of the Nigerian economy
USAID Nigeria Mission Director Melissa Jones said the workshop was organized because Nigeria is experiencing a number of economic challenges, including rising fuel prices, high inflation, and food insecurity.
According to her, it is economic diversification that will lead the country out of its current challenges. This is why the AGOA workshop is focusing on the textile industry which can drive Nigeria’s exports beyond oil, she said.
“The apparel and textile industry, as I mentioned earlier, offers a very important opportunity not only to diversify, but also to create jobs and contribute to the inclusive growth of this country.
“Prosper Africa has played a very important role in bringing together the entire U.S. government to really help African countries move this issue forward,” she said.
What you need to know
Since its enactment in 2000, AGOA has been at the heart of U.S. economic policy and commercial engagement in Africa. AGOA provides eligible sub-Saharan African countries duty-free access to the U.S. market for more than 1,800 products, in addition to the more than 5,000 products eligible for duty-free access under the Generalized System of Preferences program. I will.
To meet AGOA’s rigorous eligibility requirements, countries must establish or continue to make progress toward establishing a market-based economy, the rule of law, political pluralism, and due process rights. . In addition, countries must eliminate barriers to U.S. trade and investment and enact laws. Policies to reduce poverty, fight corruption and protect human rights.
In 2015, the U.S. Congress passed legislation to modernize and extend the program through 2025. As of 2024, 32 countries are eligible for AGOA benefits, including Nigeria.
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