Nigeria/US trade increased to $6b in 2017 – Envoy

Harry Sullivan, United States, (US), Acting Director for Economic and Regional Affairs, on Tuesday, said Nigeria, US trade increased from
about $3.4 billion to about $6 billion in 2017.

Sullivan said the increase in trade was majorly accounted for by the oil sector, as he urged Nigerian government to focus more on
diversification of the nation’s economy inorder to achieve meaningful growth.

Speaking during a telephone conference with journalists organised by the Public Affairs Section of the US Embassy in Abuja, Sullivan
berated the government for the country’s dependence on oil and said it could hinder economic growth.

The briefing was aimed at providing update on US economic policy in Africa and efforts towards expansion trade and investment under the
aegis of African Growth and Opportunity Act (AGOA).

He said “AGOA is a scheme initiated by the U.S. government in May 2000 to assist the economies of sub-Saharan Africa and improve economic
relations between U.S and the region.

“Nigeria is actually one of the biggest African markets, it recorded remarkable growth in the trade relations last year, but most of that
is from the oil sector.

“It went from about $3.4 billion to $6 billion from the oil sector and looking at other areas they can have growth in the agriculture sector.

“They indeed had some growth in agriculture sector, but the level still remained small from $3million to $9million, when compared to oil export.

“This is challenge that we see in countries that mostly depend on oil, this is the need for them to diversify and develop export in other areas.

“The key for Nigeria is diversification, which is always interested in oil, but I think in order to spread well, Nigeria needs to diversify to other products.”

It would be recalled that AGOA was earlier initiated to last for 15-years, but the AGOA legislation was extended in 2015 to another 10 years, till September 2025.

Sullivan identified some advantages of AGOA to include provision of tangible incentives for African countries to continue their efforts, open their economies and build free markets.

He commended Ethiopia and Madagascar to be countries that have recorded improvement in their economies through diversification in the scheme.

He cautioned against the practice by countries wanting to do business abroad, rather than create enabling market for local products to
hinder growth of trans-border export trade.

“Doing business internationally is very difficult because you have to find the buyer and to also meet the requirement for sales of good
products in the US.

“African non-oil export under African Growth and Opportunity Act (AGOA) has grown from $1.3 million in 2001 to $4.2 billion on 2016.
And it has even done better, this year.

He said “The total US trade with sub-Sahara Africa rose from $33 billion in 2016 to $38.5 billion in 2017. US export to Africa increased to$13.1 billion while Africa export to US rose by more than 24% to more than $24 billion. And increase in oil export account for most of the increase, we also saw some encouraging line of diversification.

“Africa agricultural products export rose by 10% to $2.7 billion in 2017,” he added.

 

LAIDE AKINBOADE-ORIERE