Being the giant of Africa, and with the advantage of her population and huge market potential, Nigeria is a favorite for investors. Discussed below are some of the trade agreements the country has with other countries 

AGOA

The African Growth and Opportunity Act (AGOA) is a United States trade law adopted on May 18, 2000, to provide market access to sub-Saharan African products in the United States.

Its goal is to strengthen US economic and investment ties with Sub-Saharan Africa. The Act establishes quotas and duty-free entry into the United States for specified goods.

AGOA is now in effect and will remain so until 2025. The legislation incorporates the following provisions:

• Agribusiness products
• Clothing and footwear
• Components for vehicles
• Chemicals
• Wine\Steel

Importers in the United States can buy Nigerian items at reasonable prices thanks to unrestricted market access. It also encourages economic integration between the two countries, thereby expanding commercial connections and improving Nigeria’s ease of doing business.

ETLS

The ECOWAS Trade Liberalization Scheme (ETLS) is a trading instrument developed by the Economic Community of West African States (ECOWAS). The plan provides the fifteen member countries with unlimited market access and fosters economic cooperation within the sub-region. Nigeria, Ghana, Benin, Côte d’Ivoire, Gambia, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Senegal, Sierra Leone, Togo, Burkina Faso, and Cape Verde are among the countries covered by the Scheme.

Unrestricted market access is the most evident benefit for buyers and importers in the ECOWAS area. As a result, they will be able to purchase Nigerian goods at competitive costs.

ECOWAS

Since its formation, ECOWAS has had a trade policy aimed at increasing intra-regional trade, increasing trade volume, and generally galvanizing economic activities within the area in a way that benefits ECOWAS citizens’ economic well-being.

To achieve sustainable development and poverty reduction, the ECOWAS trade policy aims to facilitate the region’s smooth integration into the global economy while taking into account the political decisions and development priorities of member nations.

The region’s total trade has averaged $208.1 billion. Exports are expected to be around $137.3 billion, while imports are expected to be around $80.4 billion. Nigeria is the most active trade country, accounting for over 76 percent of total commerce, followed by Ghana (9.2%), and Côte d’Ivoire (9.2%). (8.64 percent). When all other countries have a trade deficit, the region’s trade surplus, estimated at $47.3 billion, is attributed to Nigeria ($58.4 billion) and Côte d’Ivoire ($3.4 billion).

NIGERIA – CHINA

The Federal Republic of Nigeria and the People’s Republic of China established formal bilateral ties on February 10, 1971, a decade after Nigeria obtained independence from the British Empire. Nigerian-Chinese relations have grown stronger as bilateral commerce and strategic cooperation have increased. China is one of Nigeria’s most important allies and partners. Nigeria’s most important trading and export partners are China and India. According to a 2014 BBC World Service poll, 80% of Nigerians think China’s impact is favorable, with only 10% saying it is harmful, making Nigeria the world’s most pro-Chinese country.

Various media publications have identified roughly 40 Chinese government development finance projects in Nigeria between 2000 and 2011. These projects vary from a $2.5 billion loan for Nigerian rail, power, and telecommunications projects in 2008 to a $1 billion MoU for house and water supply construction in Abuja in 2009, as well as multiple train networks.

Trade links have grown at an exponential rate since 2000. Between 2000 and 2016, overall trade between the two countries increased by about $10,384 million.

INDIA – NIGERIA

The Federal Republic of Nigeria and the Republic of India have developed strategic and commercial connections. Nigeria has a High Commission in New Delhi, whereas India has a High Commission in Abuja and a Consulate in Lagos.

India is the world’s third-largest oil consumer, behind the United States and China. Every day, India consumes 5.5 million barrels of oil. India was Nigeria’s top crude oil importer from 2012 to 2013, however, the rapid growth of India’s economy, which now ranks fifth largest after the United States, China, Japan, and Germany, has resulted in increased crude oil demand. India now imports oil from Saudi Arabia, Iraq, Iran, and the United Arab Emirates, with Nigeria accounting for 7.4% of total oil imports in 2019. Since 2018, India has been buying cheaper Basra Oil from Iraq, and crude oil from West Africa, particularly Nigeria, ranks fifth in India’s crude oil imports. Oil has recently been brought into India from Brazil and Mexico.