Nigeria’s export to the United States under a duty-free policy declined by 67.8 per cent in 2020 year-on-year.
Exports to the US under the duty-free policy slumped by $3.13 billion in 2020 to $1.48 billion as against $4.61 billion in the corresponding period in 2019, according to the latest African Growth and Opportunity Act (AGOA) policy trade statistics.
The AGOA, a United States trade policy, enacted in 2000, is legislation that facilitates a duty-free trade between exporters from sub-Saharan Africa and the United States.
The AGOA was designed to promote increased trade and investment between the United States and SSA countries, promote increase access and opportunities for US investors and businesses in SSA countries, and promote economic development and reforms in SSA countries.
South Africa and Nigeria are the leading beneficiaries of the duty-free export opportunity to the United States.
The data showed that South Africa exported goods duty-free valued at $11.37 billion in 2020 leading other Sub-Saharan African countries that are beneficiaries of the initiative.
The annual trade data showed the largest contribution towards AGOA-eligible trade commodities is usually oil exports mainly from Angola and Nigeria, and to a lesser extent, Chad and the Republic of Congo.
READ ALSO: SON Boosts Non-Oil Export With Accredited Labs
For instance, oil export under the policy accounted for 99.7 percent of Nigeria’s AGOA exports to the United States in 2019.
According to the statistics, oil and gas products valued at $3.12bn were exported to the US under the policy in 2019.
However, South Africa, Kenya, Ethiopia, Lesotho, Ghana, and Madagascar are among the leading non-oil AGOA exporters.
Kenya, Ethiopia and Madagascar dominate the apparels sector.
Following the coronavirus-induced crash in oil prices earlier this year and declining demand, Nigeria has been struggling to sell its crude oil cargoes.
Prior to the lockdowns and collapse in crude oil demand caused by the coronavirus crisis, the production of US shale oil had led to a significant reduction in the exportation of Nigerian crude oil.
READ ALSO: Nigeria Exported Goods Worth $700m To Indonesia In 2020
The United States’ import of Nigeria crude oil plunged by 63.03 percent in the first quarter of this year, compared to the last quarter of 2019.
Data from the US Energy Information Administration showed that the country imported 5.53 million barrels of crude oil from Nigeria in Q1 2020, down from 15.07 million barrels in Q4 2019.
The Executive Director and Chief Executive Officer, Nigerian Export Promotion Council (NEPC), Mr. Olusegun Awolowo, while speaking at a virtual event recently noted that only a few Nigerian exporters had benefitted from the duty-free trade opportunity despite series of sensitisation carried out by the council.
