The United States and Nigeria view deepening people-to-people ties as the foundation of their relationship.
Of course, Nigeria is home to American companies like Kellogg’s and Colgate-Palmolive, which have helped elevate the U.S.-Nigeria bilateral trade relationship to new heights.
This burgeoning area is attracting investments from American companies like Mantrac/Caterpillar, further enhancing bilateral trade, investment, and opportunities for both nations.
This relationship is also pious to benefit the startup ecosystem. U.S. Ambassador Richard M. Mills, Jr., hinted on this during a fireside chat (this week) at the Lagos Business School, titled “Toward a Robust U.S.-Nigeria Commercial and Investment Partnership.”
Amb. Mills said during the fireside chat hosted by Professor Enase Okonedo, vice-chancellor, Pan-Atlantic University, that:
“Nigeria is the world’s present and future. As the African continent’s most populous country, Nigeria is poised to overtake the United States as the third most populous country in the world by 2050, with a population projected to exceed 375 million. Nigeria is already the United States’ second-largest trading partner in Africa, with two-way trade in goods and services totaling nearly $13 billion in 2024”.
“Of course, any strategy starts with people, and I would like to reflect briefly on how far the United States and Nigeria have come in deepening our people-to-people ties, the foundation of our relationship. Nigeria is the world’s present and future. As the African continent’s most populous country, Nigeria is poised to overtake the United States as the third most populous country in the world by 2050, with a population projected to exceed 375 million. Nigeria is already the United States’ second-largest trading partner in Africa, with two-way trade in goods and services totaling nearly $13 billion in 2024.
“In terms of investment, the United States remains one of Nigeria’s leading foreign investors, with foreign direct investment reaching $6.5 billion in 2023—a 5.5 percent increase from 2022.
‘Our strong partnership is built on the rich connections that exist between our countries, our companies, our entrepreneurs, and our people. Take companies like Flutterwave, Andela, and Esusu—they were all founded by remarkable young Nigerians who studied in the United States. I’m sure even more start-ups will emerge from the minds of the more than 20,000 Nigerian students currently studying in the United States.
Those Nigerian students represent the largest number of students from any African country and the 7th largest worldwide.
Similarly, Nigerians are the largest African diaspora group in the United States, with over 750,000 people of Nigerian descent living in the United States. These deep bonds of familial, educational, business, and cultural connections underscore the strategic importance of Nigeria to U.S. policy objectives in Africa”.
He said that over the last few decades, the United States has invested billions of dollars in Nigeria’s health, education, and agriculture sectors—saving lives and creating economic opportunities.
“Today, we are at an inflection point. Now is the time for us to build on the strength of these investments and for Nigeria, one of Africa’s largest economies with huge economic potential, to enter a new phase of vibrant private sector-led growth. Our approach is clear. We are making a shift: from aid to trade.
“We are engaging African nations not as aid recipients, but as capable commercial partners. As our chief for African Affairs said, ‘Going forward, we will continue to invest in development – but we will do so through expanded trade and private investment, because it is the private sector – not assistance – that drives economic growth.’ By promoting two-way trade and investment, we will drive mutual growth for both our nations”.
U.S.-Nigeria: Trades and more
According to Amb. Mills, “As U.S. Ambassador to Nigeria, a key priority of my mandate is to increase trade, investment, and business linkages between our two nations”.
He said that, to achieve this goal, last year, the U.S. Department of Commerce—together with Nigeria’s Ministry of Industry, Trade and Investment—signed a Commercial and Investment Partnership agreement, a five-year memorandum of understanding that prioritizes three key pillars: agriculture, the digital economy, and infrastructure.
“Nigeria is one of only five African nations that the U.S. has signed a CIP agreement with. We are officially launching the Partnership discussions later this month in Abuja. The three working groups on agriculture, tech, and infrastructure, consisting of both U.S. and Nigerian private sector representatives, will be taking a hard look at each sector’s non-tariff barriers to trade and other regulatory challenges which, for too long, have dampened two-way trade and investment. Both governments will listen and learn from these private sector working groups on what concrete steps both governments can take to address these challenges.
The CIP process puts government and business into the same room to remove obstacles to trade. I firmly believe that working together to advance our shared economic interests will create jobs, boost innovation, and unlock new opportunities on both sides of the Atlantic”.
Startup Ecosystem
He added that taking full advantage of these opportunities requires not only natural resources and human capital, but also a stable, transparent, and business-friendly regulatory and investment climate.
“We also aim to unlock access for Nigerian businesses and entrepreneurs to the U.S. capital market—which, at over $120 trillion, is the largest globally and continues to rank among the most liquid and efficient in the world.
“Already, U.S. venture capital firms are investing in Nigerian startups. Over 60 percent of venture capital funding in Nigeria comes from the United States. We must continue to foster an enabling business environment that catalyzes investment and collaboration needed to attract this kind of high-impact investment”, he explained.
