The United States House of Representatives has passed a bill extending for three more years the African Growth and Opportunity Act (AGOA), which aims to boost trade between the United States and African countries.
This extension provides another three years of 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 340 votes against 54 and has now been sent to the US Senate for consideration.
AGOA, a US trade initiative established in 2000, allows African countries to export various products, especially non-oil commodities, to the United States on favorable terms, thereby promoting economic growth and trade on the continent. It ended in September last year.
It has been a vital lifeline for many African economies, providing opportunities to access the huge US market.
The AGOA Extension Act was introduced by Jason Smith, a member of the US House of Representatives, who proposed a three-year renewal through December 31, 2028, following its expiration in September 2025.
Also read: Trade Reset: How Nigeria can win after AGOA
According to a 2024 Brookings report, African countries under AGOA exported about $103 billion worth of non-raw products to the US between 2001 and 2022, highlighting the trade benefits of the deal.
In this figure, Nigeria was second only to South Africa, with total non-crude exports of $11.2 billion, while South Africa's contribution was $55.9 billion.
Furthermore, Kenya was ranked third with an export value of $7.3 billion; Lesotho ranked fourth with $6.8 billion; And Madagascar was in fifth place with $3.6 billion.
Nigeria was ranked second for top non-crude US imports, giving priority to natural resources in the category of light oils and finished products from petroleum oils, worth about $4 million between 2001 and 2022.
What does this extension mean for Nigerian exporters?
Nigeria mostly exports raw or semi-processed goods under AGOA. However, this expansion provides an opportunity for exporters to invest in processing and value addition to agricultural commodities, provides an opportunity to develop agro-processing, and offers the potential for job creation, particularly in the food value chain and small and medium scale businesses.
The extension means that 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 expansion could mean that more exporters will focus on value-added goods beyond raw material exports, as it closely aligns with the AGOA trade deal.
