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The US is transitioning from providing aid to fostering trade in Nigeria and other countries, as stated by Richard Mills Jr, the US Ambassador to Nigeria.
During a Fireside Chat at the Lagos Business School themed 'Toward a Robust US-Nigeria Commercial and Investment Partnership,' Mills Jr shared that the US is prioritizing private sector-led investments over traditional aid in its relationships with Nigeria and sub-Saharan Africa.
Nigeria ranks as the US's second-largest trade partner in Africa, with bilateral trade reaching approximately $13 billion by the end of 2024.
Mills Jr remarked, "The US has invested billions in Nigeria’s health, education, and agriculture sectors over the years, helping save lives and create new economic opportunities.
However, we have now reached what President Trump refers to as an inflection point.
It is time to build upon the strengths of these aid investments, allowing Nigeria, one of Africa's largest economies with vast potential, to enter a new phase of dynamic private sector-led growth."
He emphasized that the US is shifting from aid to trade, seeking to engage African nations as commercial partners rather than aid recipients.
The US aims to invest in development through expanding trade and private investment, recognizing that ultimately the private sector drives economic growth.
To accomplish this, last year the US Department of Commerce joined forces with Nigeria’s Ministry of Industry, Trade and Investment to sign a commercial and investment partnership agreement (CIP) that spans five years.
This agreement prioritizes three main areas: agriculture, the digital economy, and infrastructure. Nigeria is one of five African nations that have entered into this CIP agreement, and partnership discussions are set to officially launch later this month.
Mills Jr acknowledged the cooperative spirit of the current Nigerian administration, commending their willingness to listen to US business concerns.
He expressed confidence in the economic reforms implemented in Nigeria, despite the challenges they pose for many citizens.
He asserted that while these reforms have been difficult, they could eventually lead to new opportunities.
He highlighted that the recent tax reform efforts are critical for US businesses, noting a company that faced 67 different federal taxes, including one on wheelbarrows.
However, Mills Jr pointed out that power distribution and transmission issues remain significant obstacles for many US companies, particularly in the tech industry, which is eager to leverage Nigeria's talent pool.
He mentioned that the power sector is a major concern for both investors and citizens, but through programs like Power Africa, the US is supporting smaller, off-grid energy solutions to navigate some challenges posed by the national grid.
