U.S. House approves 3-year extension of AGOA trade deal for Africa 

The United States House of Representatives has passed a Bill extending the African Growth and Opportunity Act (AGOA) for three more years, a move aimed at boosting trade between the United States and African nations.

The extension provides another three-year duty-free access for eligible African countries, including Nigeria, ensuring continued export opportunities in sectors such as textiles, coffee and agricultural commodities.

The bill was approved by a vote of 340 to 54 and has now been forwarded to the US Senate for consideration.

AGOA, a U.S. trade initiative established in 2000, allows African nations to export various products, especially non-oil goods, to the United States on favourable terms, thereby promoting economic development and trade on the continent. It ended last year September.
It has been a crucial lifeline for many African economies, offering opportunities to access the vast American market.

The AGOA Extension Act was introduced by Jason Smith, a member of the US House of Representatives, who proposed a three-year renewal until December 31, 2028, after its expiration in September 2025.

Read also: Trade reset: How Nigeria can win after AGOA

According to a 2024 Brookings report, African countries under AGOA exported approximately $103 billion worth of non-crude products to the US between 2001 and 2022, reflecting the trade benefit of the deal.

Of this figure, Nigeria was ranked second highest after South Africa, with a total of non-crude exports valued at $11.2 billion, while South Africa contributed $55.9 billion.

Also, Kenya was ranked third with an export value of $7.3 billion; Lesotho with $6.8 billion in fourth place; and Madagascar was fifth with $3.6 billion.

Nigeria was also ranked second place for top non-crude US imports, favouring natural resources in the category of light oils and preparations from petroleum oils valued at around $4 million between 2001 and 2022.

What the extension means for Nigerian exporters

Nigeria mostly exports raw or semi-processed goods under AGOA. However, the extension provides an opportunity for exporters to invest in processing and value addition in agricultural commodities, a chance to grow agro-processing, and offers potential for job creation, especially in the food value chain and small and medium-scale businesses.

The extension further means exporters can continue to sell eligible goods to the United States without paying import duties, making Nigerian products more competitive than those from non-AGOA countries.

This extension could mean that more exporters would look beyond exporting raw materials to value-added commodities, as this aligns closely with the AGOA trade deal.