ISSN (Online): 2321-3418
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Economics and Management
Open Access

Legal Challenges Facing U.S. Companies Expanding into Nigeria under the African Growth and Opportunity Act (AGOA)

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DOI: 10.18535/ijsrm/v13i12.em04· Pages: 10054-10058· Vol. 13, No. 12, (2025)· Published: December 12, 2025
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Abstract

The African Growth and Opportunity Act (AGOA), passed in 2000 as a component of the U.S. Trade and Development Act (19 U.S.C. §§ 3701-3747), has been a significant factor in determining U.S. trade policy for Sub-Saharan Africa.[1] The main goal of the act is to strengthen worldwide commercial relations by allowing certain African countries to sell their products in America without paying import duties, and at the same time, imposing the existence of economic reforms, good governance, and opening up the market.[2] Nigeria, which is the largest economy in the continent and among the main oil-producing countries, has been considered the main beneficiary of AGOA with enormous potential for investments and industrial diversification.[3] Yet, the extent of U.S. corporate engagement in Nigeria remains modest relative to other African markets such as Kenya or South Africa.[4] While AGOA provides a favorable legal framework for trade, U.S. firms face numerous barriers—including regulatory inconsistency, weak institutions, corruption, and contract enforcement challenges. This article examines these legal obstacles and proposes targeted reforms to enhance AGOA’s effectiveness in advancing U.S.–Nigeria economic cooperation.

Keywords

African Growth and Opportunity Act

References

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Author details
Hriday Bijlani
Independent Researcher
✉ Corresponding Author
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