Founder and CEO of Agate Solutions LLC, Shaquana Teasley, has revealed that Nigeria’s textile and apparel sector contributed a mere 0.01 per cent of imports to the United States under the African Growth and Opportunity Act (AGOA) in 2023.
Teasley shared this statistic at the AGOA training workshop organised by USAID and Prosper Africa, which aimed to equip export-ready Nigerian businesses, trade officials, and stakeholders with the knowledge and skills needed to maximise AGOA benefits and enhance its utilisation in Nigeria.
The African Growth and Opportunity Act, enacted in 2000, is U.S. trade legislation designed to strengthen trade and economic relations between the U.S. and eligible sub-Saharan African countries. It allows certain products to be exported to the U.S. duty-free, providing significant advantages for eligible nations.
Teasley highlighted that Nigeria’s textile and apparel exports under AGOA totaled only $548,000 in 2023, reflecting a disappointing share of the continent’s total textile and apparel exports. “In comparison to the peak AGOA utilisation in 2008, where imports reached $35.3 billion, the current figures indicate a significant decline,” she noted.
In 2023, of the $5.7 billion in total imports from Nigeria to the U.S., only $3.8 billion benefitted from duty-free access under AGOA. Notably, fuel comprised a significant portion of this, accounting for 98 per cent of AGOA imports in 2003, totaling $3.7 billion. Other categories, such as metals and ores, agricultural products, and chemicals, contributed minimally, with metals at $63 million (2%), agriculture at $25 million (1%), and chemicals at $4 million (0.1%).
Teasley emphasised the untapped potential of Nigeria’s textile and apparel industry. “AGOA presents a lucrative gateway for Nigerian textile producers to enter the U.S. market; however, the sector has not fully capitalised on this opportunity,” she stated during her address to stakeholders.
To address this gap, the AGOA training workshop focused on helping stakeholders navigate the complexities of AGOA and the U.S. market. Sessions provided insights into AGOA provisions, market requirements, and strategies for expanding exports. By emphasising capacity building and knowledge sharing, the workshop aims to empower Nigerian exporters to fully leverage AGOA benefits.
“The training is designed to equip participants with the knowledge and tools necessary to take full advantage of AGOA’s benefits,” Teasley explained. Increasing awareness and understanding of AGOA could significantly boost Nigeria’s textile exports.
Another key focus of the workshop is enhancing the competitiveness of Nigerian textile products on the global stage, particularly against producers from other AGOA-eligible countries like Kenya, which have made substantial strides in U.S. market penetration. Teasley stressed the importance of strengthening local production capacity and ensuring compliance with international standards to improve Nigeria’s position in AGOA exports.
She also encouraged collaboration between the public and private sectors to drive the industry forward and harness the full potential of AGOA.
The United States, through the Office of the United States Trade Representative (USTR), annually assesses whether countries meet the eligibility requirements for AGOA benefits. This means beneficiary status can be granted or revoked at the U.S. President’s discretion.
AGOA eligibility criteria are outlined in Section 104 of the AGOA legislation (Public Law 106/200). Only sub-Saharan African countries are considered eligible, and the list can change over time. Nigeria is among the eligible countries, which include Angola, Benin, Botswana, Cape Verde, Chad, Comoros, Congo (Republic), Congo (DRC), Côte d’Ivoire, Djibouti, Eswatini, Gambia, Ghana, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mauritania, Mauritius, Mozambique, Namibia, Rwanda, São Tomé and Príncipe, Senegal, Sierra Leone, South Africa, Tanzania, Togo, and Zambia.
