Nigerian digital bank PalmPay is intensifying efforts to promote contactless payments, showcasing its commitment at the BusinessDay Future of Payment Conference in Lagos

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A new US tariff imperils Nigeria’s $277bn in Nigeria AGOA trade, predominantly oil, highlighting the urgent need for export diversification beyond petroleum

Nigeria’s significant participation in the African Growth and Opportunity Act (AGOA) faces serious jeopardy following US President Donald Trump’s recent announcement of a newly imposed 14 per cent tariff.

Also read: Nigerian-American Chamber of Commerce To Inaugurate 20th President & Executive Council, Unveils Bold Economic Agenda

This policy shift threatens to negate the preferential trade advantages offered by AGOA and intensifies concerns regarding Nigeria’s ongoing efforts to diversify its export base.

In an exclusive interview, Alhaji Sheriff Balogun, President of the Nigerian-American Chamber of Commerce, provided crucial insights into Nigeria’s global trade strategy and the potential ramifications of this new tariff.

Since its inception in 2000, Nigeria has exported an estimated $277 billion worth of goods to the United States under the AGOA framework.

However, Alhaji Balogun highlighted a critical imbalance: “The vast majority of this value has come from crude oil shipments.

In fact, petroleum products have overwhelmingly dominated Nigeria’s AGOA exports each year – oil alone accounts for practically all of Nigeria’s exports under the programme by value.”

This over-reliance on oil signifies that for over two decades, Nigeria’s engagement with AGOA has been overwhelmingly tied to a single commodity.

Non-oil exports, including agricultural and manufactured goods, have constituted only a minor fraction of the total export value.

Nigeria’s annual average AGOA exports to the US hover around $10–$12 billion. Yet, Alhaji Balogun pointed out that this average masks considerable fluctuations.

During the mid-2000s oil boom, Nigeria’s exports to the US under AGOA soared, reaching over $35 billion in 2008. However, after 2010, a decline in US demand for Nigerian crude, spurred by increased US oil production, caused Nigeria’s AGOA exports to plummet, dropping dramatically from $17.2 billion in 2009 to a mere $1.4 billion in 2015.

While exports have since rebounded somewhat, this volatility underscores Nigeria’s vulnerability due to its dependence on oil.

Alhaji Balogun explained the detrimental impact of the new 14 per cent US tariff: “A blanket 14 per cent tariff on Nigerian goods would undercut the duty-free access that AGOA currently provides.”

He elaborated that AGOA’s core benefit, allowing eligible Nigerian exports to enter the US tariff-free and gain a price advantage, would be significantly eroded.

The imposition of a 14 per cent import tax would make Nigerian products more expensive in the US market, leading to higher costs for Nigerian exporters and US importers, reduced competitiveness against tariff-free AGOA nations, and potentially lower export volumes as US buyers seek alternative suppliers.

“In essence, the 14 per cent tariff effectively nullifies much of Nigeria’s AGOA advantage, putting its exporters at a disadvantage and potentially shrinking Nigeria’s U.S.-bound exports if it remains in effect,” he summarised.

Despite the substantial overall export value, Alhaji Balogun revealed that “relatively few Nigerian companies have taken part in AGOA trade, aside from the oil sector.”

He estimated that the total number of Nigerian firms exporting to the US under AGOA since 2000 is likely less than a hundred.

Alarmingly, annual participation is also exceptionally low, with roughly 20–40 Nigerian firms (excluding oil) exporting to the US via AGOA in a typical year.

This underutilisation of AGOA by Nigerian businesses highlights a significant missed opportunity for economic diversification.

Alhaji Balogun reiterated that “oil is by far the biggest beneficiary” of AGOA in Nigeria, accounting for over 95 per cent of the export value.

While some non-oil sectors, such as agriculture (cocoa beans, sesame seeds, cashew nuts, shea butter), have seen modest growth, their volumes remain small compared to Nigeria’s potential.

Notably, Nigeria has failed to significantly capitalise on AGOA’s benefits for textiles and apparel, unlike several other African nations. Exports of manufactured or value-added products have also been negligible.

Comparing Nigeria’s AGOA performance to other top beneficiaries, Alhaji Balogun noted that while Nigeria’s export value has been high due to oil, other nations like South Africa and Kenya have achieved more diversified export portfolios, including manufactured goods and apparel, leading to job creation in those sectors.

This comparison underscores Nigeria’s underutilisation of AGOA’s potential for industrial and export diversification.

Looking ahead, Alhaji Balogun stressed that “Nigeria has yet to truly use AGOA as a tool for diversification.” While AGOA boosted oil exports when US demand was high, it has not transformed Nigeria’s non-oil export sectors.

He acknowledged encouraging signs in agricultural exports but emphasised the need for Nigeria to scale up these efforts by improving product quality, meeting US standards, and investing in processing.

With AGOA set to expire in September unless renewed, Alhaji Balogun urged Nigeria to maximise its benefits in the short term and proactively exploit any future similar programmes.

He warned that the new US tariff “blunts the incentive for firms to invest in exporting to the US,” making it crucial for the Nigerian government to intensify policies supporting non-oil exports to ensure more businesses can benefit from trade initiatives.

Wema Bank, Nigeria’s most innovative bank and pioneer of Africa’s first fully digital bank, ALAT, has commemorated International Women’s Day 2025 in style, hosting a grand event on Tuesday, March 11, 2025, at its Head Office Facility in Lagos.
The Wema Bank International Women’s Day 2025 Event convened iconic women from diverse fields and industries to dissect the topic “Harnessing Innovation & Technology To Accelerate Financial Inclusion for Women”. Deriving from the global IWD 2025 theme “Accelerate Action”, the Wema Bank International Women’s Day 2025 event highlighted the need for implementing an innovative approach to promoting financial inclusion for all women and forging long term sustainability for women empowerment.

Among the major highlights of the Wema Bank International Women’s Day 2025 event were the Women Network’s graduation ceremony of the Big Sister Programme Cohort 2; special performances across music and poetry; the HeForShe 2025 Awards where outstanding male employees of Wema Bank who have made outstanding strides in accelerating action towards women empowerment, were awarded to encourage more men to become pro-women; and a panel session featuring distinguished women who have been instrumental in accelerating action for women empowerment.
Moderated by Media Personality and TV Presenter, Olive Emodi, the session featured three panelists including Dr. Nneka Okekearu, the Director of the Entreprise Development Centre of Pan-Atlantic University, Solape Akinpelu, CEO of Harvest and Tochi Ginigeme, Lead Deal Matchmaking at Impact Investors Foundation; all of whom provided invaluable insights and visionary contributions to the perceptive discussion on addressing roadblocks and leveraging innovation for women empowerment. This grand event panned out excellently, receiving commendation from women across Nigeria.
Attesting to Wema Bank’s commitment to women empowerment Chairman, Dr. Mrs. Oluwayemisi Olorunshola, the Chairman of Wema Bank, highlighted the Bank’s role in promoting the Sustainable Development Goals (SDGs) towards the global advancement of gender equality. According to her, ““The theme of this year’s International Women’s Day is “Accelerate Action”, and as the first female Chairman of Wema Bank, my career is a testament to the impact that can be generated and the change that can be achieved, when individuals and corporations take decisive steps to accelerate action for women empowerment. The goal of the 5th Sustainable Development Goal, ‘Gender Equality’, is to build a world where woman can thrive without discrimination and oppression, and we must all do the work to contribute to the achievement of this goal”.
Emphasising the deep-rooted nature of Wema Bank’s commitment to empowerment, Mr. Moruf Oseni (FCIB), Wema Bank’s MD/CEO commented, “This mission of empowering lives is one that is deeply rooted in our identity as Wema Bank. From inception in 1945 to present, we have carried on the mission of empowering our people. A lot has changed in the last 8 decades but one thing that has remained constant is our commitment to inclusion, empowerment and support for women. As a Bank, we recognise the gender equality gap that exists globally, and we understand the need for a tailored approach to addressing this challenge. This is why we launched our women-focused proposition, SARA by Wema, in 2019, and why we continue to take intentional steps towards empowering women”.
“Since the launch of SARA, we have banked over 400,000 unbanked women, disbursed over N75 billion in low-interest loans and over $20,000 in grants, created over 900 jobs for women, provided market access for 3,000 women, connecting them with over 135,000 customers and generating over $4 million in sales; and these are just to mention a few. Why have we been so intentional in the gender space? Because “Accelerating Action”, for us at Wema Bank, is beyond lip service. We walk the talk when it comes to women empowerment and today, we are gathered here to not only celebrate the exceptional impact we have made in empowering women for 8 decades, but more importantly, raising the right conversations and driving the right actions as we look ahead to a future of much greater possibilities. Wema Bank has supported women since 1945 and we celebrate our 80 years anniversary come May 2nd, 2025, we are more driven than ever to continue empowering women and building a future where women thrive, where equity is the norm, and where equality and empowerment are not just ideals but realities”.
Wema Bank has proven itself to be a gender inclusion and equality driven organisation, going above and beyond to empower women from all walks of life to thrive, and contributing to the advancement of the global movement for gender equality.
As Wema Bank counts down to 80 years, the world joins in to celebrate Nigeria’s oldest indigenous and most resilient bank, pioneering innovative impact in the African banking industry since 1945 and beyond 2025.