The United States imports from Nigeria increased N2 billion increased by $2 billion in 2021, according to the latest data from the African Growth and Opportunity Act (AGOA).
Nigeria exported goods valued at $3.48 billion to the United States in 2021, representing an increase of $2 billion from $1.48 billion recorded in 2020.
In the last 10 years, exports to the United States increased just three times, in 2016, 2017 and 2021.
Nigeria exported the most in 10 years to the United States in 2011 when it exported goods worth $33.85 billion. This declined by 43.8 per cent to $19 billion in 2012. The value moderated further in the following year of 2013 to $11.7 bllion and then $3.8 billion in 2014.
The decline continues in 2015 as exports value dipped once more to $1.9 billion. However, grew for the first time in five years in 2016 when it rose to $4.17 billion.
The momentum was sustained in 2017 when it grew to $7.05 billion before continuing its decline in 2018. Nigeria’s exports valued stood at $5.62 billion in 2018 and $4.6 billion in 2019.
COVID-19 lockdown, however, plunged exports to United States by the most in 2020 to $1.48 billion. Reopening of global economy bolstered exports value in 2021, but still below pre-pandemic value of 2019.
“COVID was a very important factor and not just export to the US but there was a general business decline. Not just locally but globally,” said Sola Obadimu, DG, Nigerian-American Chamber of Commerce (NACC). “It wasn’t anything peculiar to Nigeria by a long shot,” he said of the recovery in exports by 2021.
AGOA is a United States Trade Act enacted in May 2000 to enhance market access to the US for qualifying Sub-Saharan African (SSA) countries.
“Under AGOA, there is a continual attempt to educate people, particularly on the issue of packaging and also in terms of supporting SMEs that are into exports in the areas of finance, quality issues, keeping to timelines and whatever letters of contracts they have with their clients,” Obadimu. “We hope things will get better particularly as we are on the final home lap to 2025, which is the terminal date for AGOA unless there is any form of extension.”
