Trending in Nigeria

Jul 3, 2025, 1:06 PM



U.S. Travel Ban on Nigeria, its Second-largest Trade Partner


While diplomatic tensions exist, the US-Nigeria economic relationship is a cornerstone of mutual benefit. Maintaining and deepening this partnership is crucial for sustained economic growth and strategic cooperation.

U.S. Wants to Ban Nigeria

U.S. Wants to Ban Nigeria

The U.S. cannot possibly be planning to ban its second-largest trade partner; it would seem impractical. Nigeria and the United States share a robust and evolving economic partnership that is increasingly anchored on trade, investment, and mutual prosperity.

Despite recent tensions over potential US travel bans on Nigerian citizens, the broader commercial relationship remains vital to both countries, with significant benefits flowing to American businesses and the US economy.

In 2024, bilateral trade between Nigeria and the US reached approximately $13 billion, making Nigeria the United States’ second-largest trading partner in Africa.

This trade encompasses a wide range of goods and services. Nigeria exports primarily crude oil, cocoa, and other agricultural products to the US, while the US exports vehicles, machinery, wheat, fuels, and plastics to Nigeria.

The trade relationship supports jobs on both sides of the Atlantic, with American companies actively investing in Nigeria’s growing market.

The United States remains one of Nigeria’s leading foreign investors, with foreign direct investment (FDI) reaching $6.5 billion in 2023, reflecting a 5.5% increase from the previous year.

American Investments & Nigerian Partnership

American investments span sectors such as energy, technology, agriculture, and infrastructure, highlighting Nigeria’s strategic importance as a commercial partner.

A key development in the partnership is the United States–Nigeria Commercial and Investment Partnership (CIP), a five-year initiative launched in July 2024.

The CIP aims to deepen bilateral commercial cooperation by removing trade barriers, promoting private sector investment, and expanding opportunities in critical sectors like agriculture, the digital economy, and infrastructure.

The partnership also facilitates access for Nigerian startups to US capital markets, valued at over $120 trillion, helping to boost innovation and job creation.

Nigeria’s mineral wealth, especially in oil and rare earth elements, is of strategic interest to the US. These resources are essential for energy security and high-tech industries in America.

Nigeria’s position as a major oil producer and supplier of critical minerals makes it a valuable partner amid global supply chain challenges.

However, the relationship faces challenges. The US’s proposed travel bans and new tariffs—such as the “Liberation Day Tariffs” imposing a 14% tariff on Nigerian imports—could disrupt trade flows, reduce foreign exchange inflows to Nigeria, and increase costs for Nigerian businesses.

This, in turn, risks weakening Nigeria’s currency and exacerbating inflation, which could impact the broader economic environment for US investors.

To mitigate these risks, experts recommend Nigeria strengthen its economic reforms, diversify exports beyond oil, and enhance infrastructure investment.

Both countries are committed to evolving their partnership from traditional aid toward a private sector-led commercial engagement, fostering a future of shared prosperity.

The US gains access to vital minerals, energy resources, and emerging markets, while Nigerian trade and investment opportunities continue to expand, creating jobs and fostering innovation on both sides.

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