President Donald Trump has signed a one-year extension of the African Growth and Opportunity Act (AGOA), giving Nigerian exporters until December 31, 2026, to access the US market duty-free. This is a significantly shorter extension than the 10-year renewal granted in 2015, signalling that businesses must act decisively to capitalise on this opportunity.
What Is AGOA and Why Does It Matter?
AGOA is a 25-year-old trade agreement that allows 32 eligible African countries to export over 1,800 products to the United States without paying import duties. For Nigeria, the agreement covers more than 6,000 products, making it one of the most valuable trade preferences available to Nigerian exporters.
The duty-free access can represent savings of 5-25% on product costs, making Nigerian goods significantly more competitive in the American market. For context, Nigeria was the second-highest earner from AGOA, though oil dominated exports at over 90% of the total.
Products Eligible for Duty-Free Export
While oil has historically dominated Nigeria's AGOA exports, the real opportunity lies in non-oil products. Eligible categories include agricultural products such as cocoa, sesame seeds, cashew nuts, and shea butter. Textiles and apparel qualify under a special visa programme. Leather goods, rubber products, and handicrafts are also covered, along with certain manufactured goods and processed foods.
The textile and apparel sector offers particularly strong potential. Countries like Lesotho have built entire industries around AGOA textile exports, with the sector contributing one-third of GDP and employing thousands of workers. Nigeria obtained the textile visa but has yet to fully capitalise on it.
How to Start Exporting Under AGOA
First, verify that your product qualifies. The US International Trade Commission maintains a complete list of eligible products with their Harmonized System (HS) codes. Your product must meet rules of origin requirements, meaning it must be substantially produced or transformed in Nigeria.
Second, ensure your business is export-ready. This includes having proper documentation, meeting US quality and safety standards, and having the capacity to fulfil orders consistently. The Nigerian Export Promotion Council (NEPC) offers training and support for aspiring exporters.
Third, find buyers in the US market. Trade shows, B2B platforms, and Nigerian trade missions can help connect you with American importers. The US Commercial Service and Nigerian embassies can also facilitate introductions.
Challenges and How to Overcome Them
Nigerian exporters have historically struggled to maximise AGOA benefits due to several factors. Infrastructure constraints, including unreliable power and port congestion, increase costs and reduce competitiveness. Many businesses lack knowledge of AGOA rules and procedures. Quality standards often fall short of US requirements, and there is limited market intelligence about American consumer preferences.
The Manufacturers Association of Nigeria has called for more intentional government support, including training on AGOA rules and better use of Nigerian embassies for market intelligence. However, businesses must also take initiative to seek out this knowledge independently.
The Clock Is Ticking
With only one year of guaranteed access remaining, Nigerian businesses cannot afford to wait. Export analyst Obiora Madu suggests focusing on a few key products and building complete value chains that can yield results within the remaining window.
The US Trade Representative has signalled intent to push for greater American market access in Africa during the next year, suggesting that future AGOA renewals may come with additional conditions. Businesses that establish export relationships now will be better positioned regardless of what happens after December 2026.
For Nigerian businesses serious about accessing the US market, the time to act is now.
Sources: BusinessDay, US Trade Representative, African Growth and Opportunity Act