US urges Nigeria to diversify economy as result of poor agricultural exports in 2017

Figures quoted by the US envoy shows oil sector is still the main cash cow of the Nigerian government.

The United States Acting Director for Economic and Regional Affairs, Mr Harry Sullivan has urged the Nigerian government to focus on diversifying the economy as only $9million of agricultural produce was sent to US in 2017.

Sullivan disclosed that Nigeria-US trade increased to $6 billion in 2017 from $3.5 billion and oil exports still holds sways as major trade commodity. A trend noticed in trade relations between Nigeria and other major countries across the world.

The US envoy disclosed this during a telephone conference with journalists organised by the Public Affairs Section of the US Embassy in Abuja on Tuesday, February 13, 2018.

According to the US Embassy, the media briefing was aimed at providing an update on US economic policy in Africa. It is also to assess the country’s trade expansion plan under the aegis of African Growth and Opportunity Act (AGOA).

“AGOA is a scheme initiated by the U.S. government in May 2000 to assist the economies of sub-Saharan Africa and improve economic relations between the U.S and the region,” Sullivan said.

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US President George Bush at the AGOA extension signing ceremony in 2004

 (agoa)

“Nigeria is actually one of the biggest African markets, it recorded remarkable growth in the trade relations last year, but most of that is from the oil sector. It went from about $3.4 billion to $6 billion from the oil sector and looking at other areas they can have growth in the agriculture sector.”

“They indeed had some growth in agriculture sector, but the level still remained small from $3million to $9million, when compared to oil export. This is a challenge that we see in countries that mostly depend on oil, this is the need for them to diversify and develop export in other areas.”

“The key for Nigeria is diversification, which is always interested in oil, but I think in order to spread well, Nigeria needs to diversify to other products.”

The AGOA was enacted in 2004 to provide incentives for African countries towards opening their economies and build free markets. Ethiopia and Madagascar were noted to have made tremendous achievements in economic diversification.

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