The United States is strengthening commercial and investment ties with Nigeria as it pivots from an aid-based approach to a trade-led strategy, according to U.S. Ambassador Richard M. Mills, Jr.
Speaking at a Fireside Chat hosted by the Lagos Business School, Ambassador Mills said the U.S. is now positioning Nigeria as a key commercial partner rather than an aid recipient. The event was themed "Toward a robust U.S.-Nigeria commercial and investment partnership."
"Our approach is clear: from aid to trade," the ambassador said. "We are engaging African nations not as aid recipients, but as capable commercial partners. By promoting two-way trade and investment, we will drive mutual growth for both our nations."
The strategy is part of the new U.S. Commercial Diplomacy Strategy for Sub-Saharan Africa, launched last month at the Africa CEO Forum in Abidjan by Ambassador Troy Fitrell of the U.S. State Department. The initiative emphasizes expanded trade, increased private investment, and sustainable economic growth across the continent.
Unlocking Nigeria's market potential
Ambassador Mills acknowledged the vast potential of Nigeria's economy and the need to address structural barriers. He cited issues such as regulatory uncertainty, electricity supply challenges, and corruption as areas requiring urgent reform.
He also revealed that the U.S. is working to channel Nigeria's $20 billion annual diaspora remittances into productive trade and investment flows. Part of this effort includes ongoing negotiations to remove the 10% tariff currently imposed on Nigerian exports to the U.S.
"We are actively identifying top market reforms needed to improve Nigeria's business environment based on feedback from both U.S. and Nigerian businesses," Mills said.
Other focus areas include promoting transparency in policymaking, supporting infrastructure development—particularly in power—and encouraging reforms that level the playing field for all economic partners, including non-Western firms.
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A five-year roadmap for deeper ties
To formalize its economic engagement, the U.S. Department of Commerce and Nigeria's Ministry of Industry, Trade and Investment recently signed a five-year Commercial and Investment Partnership (CIP) agreement. The pact prioritizes agriculture, the digital economy, and infrastructure.
"The CIP process puts government and business into the same room to remove obstacles to trade," Mills explained.
He called on Nigerian policymakers to stimulate investment and recognize the long-term value of U.S. innovation and business practices.
Dean of the Lagos Business School, Professor Olayinka David-West, echoed the ambassador's sentiments, urging both countries to leverage their respective strengths to turn economic challenges into sustainable opportunities.
