FG, US sign agreement to expand trade, investments

The Federal Government and the United States have signed a Memorandum of Understanding on commercial and investment partnership, marking a significant step in strengthening their economic ties.

The agreement was signed on the sidelines of the 2024 AGOA Forum held in Washington DC by the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, and the US Secretary of Commerce, Gina Raimondo, a statement issued by the trade ministry stated on Sunday.

It said the MOU aims to deepen bilateral commercial and investment ties between Nigeria and the US through collaboration to enhance the business environment, facilitate private sector-led trade and investment projects, develop direct business relations, and implement actions for a mutually beneficial trade and investment relationship.

The agreement focuses on key economic sectors including infrastructure, agriculture, sports and the digital and creative economy. It also involves cross-cutting areas such as investment promotion and regulatory reforms.

It establishes a framework for regular consultations at various levels, including business-to-government, government-to-government, and business-to-business engagements.

In addition to the MOU, both countries agreed on new avenues of commercial cooperation and affirming shared priorities on the digital economy, demonstrating a comprehensive approach to enhancing bilateral economic relations.

The statement quoted the minister as saying, “This MOU marks a pivotal moment in Nigeria-U.S. economic relations. By focusing on critical sectors like infrastructure, agriculture, and the creative and digital economy, we are laying the groundwork for sustainable economic growth and job creation.

“This partnership underscores our commitment to nurturing an enabling environment for investment and trade, which is crucial for President Bola Tinubu’s economic development agenda. We are particularly excited about the opportunities this presents for our fast-growing tech sector and the potential for knowledge transfer and innovation.”

On her part, the US Secretary of Commerce emphasised the importance of the partnership, saying, “With the largest population and largest democracy in Africa, Nigeria is an essential partner for the United States. At the US Department of Commerce, we are committed to working hand-in-hand with our Nigerian Government colleagues to foster deeper commercial cooperation that helps promote inclusive economic growth, fosters innovation, and creates jobs in both our countries.”

The MOU establishes structures for cooperation, including ministerial co-chairs, technical co-chairs, and various levels of consultation involving both government and private sector stakeholders. It is set to remain operative for five years, with provisions for review and revision as needed.

This agreement represents a significant milestone in strengthening economic ties between Nigeria and the United States, promising to usher in a new era of mutual prosperity and cooperation.

Also at the event, the Director-General of the Small and Medium Enterprises Development Agency of Nigeria, Charles Odii, initiated discussions to secure investments and expand market opportunities for Nigerian small and medium enterprises.

He said the goal of the agency was to bridge the gap between Nigerian and US small businesses, ensuring that AGOA’s opportunities are fully leveraged to foster growth, industrialisation, job creation, and improved production quality for Nigerian SMEs.

During his presentation, Odii outlined the ‘Grow Nigerian’ strategic blueprint, through which SMEDAN seeks to support small businesses with guidance, resources, opportunities, and workforce development.

He emphasised the agency’s efforts to enhance local production quality by negotiating affordable financing, providing discounted access to tools and infrastructure such as power through ongoing revamping of its Industrial Development Centres, promoting local resource potential through initiatives like ‘One Local Government One Product,’ and improving productivity through programmes like the National Business Skills Development Initiative.

Odii also highlighted SMEDAN’s initiatives to increase awareness of export opportunities such as AGOA among Nigerian small businesses, with targeted support for key sectors like textiles and agriculture.