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

  1. Adu DT, Li W and P.M. Sawadgo W, ‘Trade and Development Implications of the U.S. African Growth and Opportunity Act’ (2024) 57 Applied Economics 1
  2. B. Rapanyane M, ‘USA Investment and Trade Relations with Sub-Saharan Africa: Special Reference to the African Growth and Opportunity Act’ (2022) 17 African Journal of Business and Economic Research 183
  3. BBC News, ‘Shell and Halliburton Quizzed over Nigeria “Corruption”’ BBC News (30 November 2010) <https://www.bbc.com/news/world-africa-11877434> accessed 4 November 2025
  4. BusinessDay, ‘Meta, NDPC Resolve $32.8m Privacy Dispute out of Court - Businessday NG’ (Businessday NG3 November 2025) <https://businessday.ng/news/article/meta-ndpc-resolve-32-8m-privacy-dispute-out-of-court/> accessed 5 November 2025
  5. Ifeanyi E Greene and Joseph A Enyioma, ‘Seaports Administration in Nigeria: A Study of Apapa Port Complex’ (2018) 14 European Scientific Journal, ESJ 281
  6. Kulu E and Bentum-Ennin I, ‘African Growth and Opportunity Act (AGOA) and Exports of Sub-Saharan African Countries to the United States of America: Does Credit Matter?’ (2023) 9 Heliyon
  7. Mercy F-O and Adetona A Sikiru, ‘Exchange Rate Management in Nigeria: Historical Trends and Policy Insights’ (2025) IX International Journal of Research and Innovation in Social Science 88
  8. Ogunsanya OA and others, ‘Barriers to Sustainable Procurement in the Nigerian Construction Industry: An Exploratory Factor Analysis’ (2019) 22 International Journal of Construction Management 1
  9. Oludotun Fasanya D, Ingham H and Read R, ‘Determinants of Internationalisation by Firms from Sub-Saharan Africa’ (2022) 144 Journal of Business Research 951
  10. Osabohien R, Adeleye N and Osabuohien E, ‘African Growth and Opportunity Act and Trade Performance in Nigeria’ (2021) 7 Heliyon
  11. Osuma G and others, ‘Evaluating the Impact of Systemic Corruption and Political Risk on Foreign Direct Investment Inflows in Nigeria: An Analysis of Key Determinants’ (2024) 5 Discover Sustainability 1
  12. Punch Newspaper, ‘US Report Calls out Nigeria’s Trade Barriers, Port Corruption’ (Punchng.com2025) <https://punchng.com/us-report-calls-out-nigerias-trade-barriers-port-corruption/> accessed 3 November 2025
  13. Sorgho Z, ‘US Suspension Policy from the African Growth and Opportunity Act (AGOA): An Estimation of the Missing Exports from Sub‐Saharan Africa’ (2024) 92 South African Journal of Economics 1
  14. Tadesse B, ‘The Impacts of the African Growth Opportunity Act on the Economic Performances of Sub-Saharan African Countries: A Comprehensive Review’ (2024) 6 Sci 14
  15. Titilope AO, ‘Intellectual Property Rights Protection in Nigeria’ (2020) 9 International Journal of Library and Information Services 51
  16. Transparency International, ‘Corruption Perceptions Index 2024’ (Transparency.org2025) <https://www.transparency.org/en/cpi/2024> accessed 4 November 2025
  17. World Bank, ‘Doing Business - World Bank Group’ (subnational.doingbusiness.org2020) <https://subnational.doingbusiness.org/en/data/exploretopics/enforcing-contracts/score> accessed 4 November 2025