By Taibat Ummi Yakubu
The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has welcomed the extension of the African Growth and Opportunity Act (AGOA) after United States President Donald Trump signed legislation renewing the trade programme for another two years.
The development has brought relief to African exporters and governments, ending months of uncertainty over the future of a trade arrangement that grants eligible African countries duty-free access to the American market.
Nigeria is among 32 African nations benefiting from AGOA, a programme launched in 2000 to strengthen economic ties between the United States and Africa while encouraging industrial growth, job creation and investment across the continent.
Reacting to the decision, Okonjo-Iweala described the extension as a positive step for Africa-US economic relations.
In a post on X, the former Nigerian finance minister said the renewed trade preferences would help deepen commercial engagement between African countries and the United States.
She commended the US Congress, the Trump administration, the African Union and several stakeholders who worked behind the scenes to ensure the programme's continuation.
“Great to learn that the USA has granted a two-year extension of the African Growth and Opportunity Act (AGOA), extending trade preferences to qualifying African countries,” she wrote.
She added that the extension could stimulate stronger and mutually beneficial trade relations between Africa and the United States.
The signing of the bill follows months of debate in Washington over the future of AGOA after the programme expired on September 30, 2025.
Concerns had grown across Africa that the Trump administration could either discontinue the initiative or introduce significant restrictions that might exclude some countries from participating.
Particular attention had focused on South Africa after reports emerged that some American lawmakers were lobbying for its removal from the programme.
Following Trump's return to office, a group of US congressmen reportedly urged him to bar South Africa from AGOA. In December, US Trade Representative Jamieson Greer described South Africa as a “unique problem” and suggested that different treatment for the country was under consideration.
Despite those concerns, both chambers of Congress approved an extension of the programme, and Trump signed the legislation into law on Friday, ensuring AGOA remains in force through December 2028.
The renewal was passed without major policy changes, providing continuity and certainty for exporters, manufacturers and investors across participating African countries.
Under the extension, importers will also be allowed to claim refunds on duties paid for AGOA-qualified products during the period between the programme's expiration and its renewal, restoring benefits retroactively.
US lawmakers who championed the legislation praised its passage, describing AGOA as a cornerstone of America's economic relationship with Africa.
Chairman of the House Ways and Means Committee, Congressman Jason Smith of Missouri, said the programme has played a vital role in promoting economic opportunity and stability throughout sub-Saharan Africa for more than two decades.
According to him, AGOA not only supports African economies but also advances US strategic interests, including access to critical minerals and stronger supply chains.
Similarly, Congresswoman Terri Sewell of Alabama, one of the leading advocates for AGOA in Congress, hailed the extension as a major victory for US-Africa relations.
Sewell said lawmakers were able to overcome political divisions to preserve a programme that has delivered significant benefits to both African nations and American businesses.
She described AGOA as one of the most successful trade initiatives in US history, noting that it has created opportunities for African exporters while opening new markets for American workers, manufacturers and farmers.
The congresswoman added that as Africa's economic influence continues to grow, the extension demonstrates America's commitment to long-term partnership, investment and shared prosperity with the continent.
The renewed AGOA framework is expected to provide a boost for African exporters, including businesses in Nigeria, by maintaining preferential access to one of the world's largest consumer markets while broader discussions on the future of US-Africa trade continue.
Comments (0)
No comments yet. Be the first to share your thoughts!