The AGOA trade pact has opened the way for more Nigerian exporters to target the American market.

rade and investment links between the U.S. and Nigeria have improved in recent years. American interests stretch into banking, infrastructure and transport, but it is the oil sector that is especially dynamic, with American giants ChevronTexaco and ExxonMobil committing billions of dollars to new projects. The African Growth and Opportunity Act (AGOA) has opened the doors for more Nigerian exporters to target the American market in areas such as textiles.

This transformation follows the dramatic turnaround in the political fortunes of the country with the return of democratic rule, and with firm commitments from the top to tackle barriers to progress, such as economic mismanagement. The message is spreading that Nigeria is open for business.

Local businessmen have welcomed the return of U.S. investors. Introducing new capital and skills is an important spur to the indigenous private sector, allowing Nigerian entrepreneurs to make their mark on the domestic economy. Without a doubt, the entrepreneurial spirit is as strong here as it is in America.

The Lagos Chamber of Commerce underlines the long tradition of private sector activity in Nigeria. At 140 years old, it is firmly established as the voice of the private sector in one of Africa’s most vibrant cities. The Chamber’s President, Chief Oleyuwe, believes that American businessmen should be more alert to the opportunities opening up in Nigeria.

“The United States is the largest producer of beer, yet the Europeans Heineken and Guinness control the market in Nigeria. America is the largest producer of grains, but hasn’t discovered the potential of our agricultural sector yet,” says Chief Oleyuwe.

It is a busy time for the Nigerian-American Chamber of Commerce. According to Chief Priscilla Kuye, the group’s National President, Nigeria still needs to get away from the old image of corruption before it can successfully attract large-scale investment in sectors such as manufacturing and agriculture.

“Rome was not built in a day, and the new democratic government will have to do a lot to revive the economy, especially the manufacturing sector,” she says.
Chief Kola Daisi, Chairman of the Nigerian Investment Promotion Commission (NIPC), says the hardest task is to overcome people’s misconceptions about Nigeria, and to
highlight the changes that have taken place.

The NIPC, set up to promote investment into Nigeria and to tell the world about the opportunities that exist, must first persuade American businessmen that it is safe to visit the country. Many companies could be missing out because of what is written in the press.

Chief Kola Daisi says he wants all existing investors to become ambassadors for the country; to show that it is a place where business can be done, and profits can be made. “The problem has been getting the message across that Nigeria has changed,” he says.

The opportunities, however, are very real. Suraj Yakubu, NIPC’s Chief Operating Officer, says investor confidence is slowly but surely being restored. Core
industries such as power, water, telecommunications and transport are being transformed, bringing down the cost of doing business.

But Mr. Yakubu says negative reporting is often enough to deter some people from visiting the country. If this happens, “the American investor is denied the chance of having a slice of the action,” he says.