Shaquana Teasley, Founder and CEO of Agate Options LLC, said that Nigeria’s textile and attire sector contributed solely 0.01% of imports to the US underneath the African Progress and Alternative Act (AGOA) in 2023.
She revealed this on the AGOA coaching workshop, organized by USAID and Prosper Africa to equip export-ready Nigerian companies, commerce officers, and related stakeholders with the mandatory information and abilities to maximise the advantages of AGOA and enhance AGOA utilization in Nigeria.
The African Progress and Alternative Act (AGOA) is a United States commerce laws enacted in 2000 geared toward enhancing commerce and {economic} relations between the U.S. and eligible sub-Saharan African international locations. It offers vital advantages for eligible African international locations by permitting sure merchandise to be exported to the U.S. duty-free.
Teasley revealed that out of the entire textile and attire exports from Africa underneath AGOA, Nigeria’s share stays a mere fraction.
She said, “In 2023, Nigeria’s textile and attire sector totalled solely $548,000, making up simply 0.01% of the entire AGOA imports.”
She additional said, “AGOA utilization peaked in 2008, with imports to the US reaching $35.3 billion. In 2023, 16 years later, out of $5.7 billion in complete imports from Nigeria to the U.S., solely $3.8 billion loved duty-free entry underneath AGOA. It’s necessary to notice that gas constitutes a big proportion of this determine, accounting for 98% of the entire AGOA imports in 2003, amounting to $3.7 billion.”
“Compared, metals and ores contributed $63 million, or 2% of the entire; agricultural merchandise had been at $25 million, representing 1%; and chemical compounds accounted for $4 million, which is lower than 1% (particularly, 0.1%).”
Teasley emphasised that Nigeria’s textile and attire business has huge potential, however it stays largely untapped.
“AGOA gives Nigerian textile producers a profitable gateway to the U.S. market. Nevertheless, the sector has not absolutely taken benefit of this chance,” she mentioned throughout her tackle to the stakeholders.
The AGOA coaching workshop goals to assist Nigerian stakeholders within the textile and attire business navigate the complexities of AGOA and the U.S. market.
The coaching periods supplied insights into AGOA’s provisions, market necessities, and techniques for increasing exports. By specializing in capability constructing and information sharing, the workshop seeks to empower Nigerian exporters to maximise the advantages of AGOA.
Teasley talked about that the coaching is designed to “equip members with the information and instruments essential to take full benefit of AGOA’s advantages.”
The hope is that by rising consciousness and understanding of AGOA, Nigeria’s textile exports can develop considerably.
One other space of focus for the AGOA coaching workshop is enhancing the competitiveness of Nigerian textile merchandise within the world market to compete with producers from different AGOA-eligible international locations, equivalent to Kenya, who’ve made vital positive aspects in U.S. market penetration, Teasley famous.
She added that strengthening native manufacturing capability and making certain compliance with worldwide requirements will likely be key to enhancing Nigeria’s place in AGOA exports. She inspired collaboration between the private and non-private sectors to drive the business ahead and leverage AGOA’s full potential.
The US, by means of the Workplace of the US Commerce Consultant (USTR), yearly assesses whether or not international locations meet the established eligibility necessities.
Because of this beneficiary standing will be granted or revoked on the discretion of the U.S. President.
AGOA eligibility necessities are outlined in Part 104 of the AGOA laws (Public Legislation 106/200). Solely international locations in Sub-Saharan Africa are thought of eligible, and the checklist of eligible international locations can change over time.
Nigeria is among the many Sub-Saharan African international locations eligible for AGOA, which additionally contains Angola, Benin, Botswana, Cape Verde, Chad, Comoros, Congo (Republic), Congo (DRC), Cote d’Ivoire, Djibouti, Eswatini, Gambia, Ghana, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mauritania, Mauritius, Mozambique, Namibia, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, South Africa, Tanzania, Togo, and Zambia
