TRALAC - Trade Law Centre

Nigeria can generate 4m Jobs annually through AGOA — Expert

Thursday, 28 September 2017

Source: The Eagle Online

An American business expert, Fred Oladehinde, says Nigeria can generate four million jobs annually through the African Growth and Opportunity Act, if it invests in the development of its Micro Small and Micro Enterprises sector.

Oladehinde, the President of the Foundation for Democracy in Africa, a Washington DC-based NGO, said this on Wednesday in an interview with the News Agency of Nigeria in Abuja.

The AGOA scheme was initiated by the United States Government in May 2000 to assist the economies of sub-Saharan Africa and to improve economic relations between the US and the region. It is to offer tangible incentives for Africa countries to continue their efforts to open their economies and build free markets.

After completing its initial 15-year period of validity, the AGOA legislation was extended in 2015 by a further 10 years to September 2025. Oladehinde noted that Nigeria had not maximally benefited from the scheme, adding that his organisation was ready to work with the government and civil society organisations to explore the scheme benefits.

The Small and Medium Enterprises expert said the AGOA plan was to reduce unemployment through the creation of 20 million jobs in Africa annually.

He said: “We need to mobilise MSMEs so that we can improve and enhance not only the value chain from supply side, but also include their participation in the global supply chain and create the needed jobs. “As you know, there is need for the creation of about 20 million jobs every year in Africa.

“And if you look at the size of Nigeria and the population, it means almost four million of this jobs will have to be created in Nigeria every year.” The Nigerian born American said he was in Nigeria to work with some civil society organisations and government agencies to utilise the benefits of AGOA to create jobs.

Oladehinde said: “Civil society has a role to play to ensure that the vibrant policy environment by the federal, states and the local governments is in place to support the development and the nourishment of MSMEs.”

He said his organisation, which is an AGOA network NGO, would work with government related agencies to educate MSMEs operators on meeting the standards of AGOA to be able to access the US market. He said there was the need for the government to also create functional clusters for the MSMEs operators where they could harness resources to meet the AGOA standards.

He said that government also needed to provide incentives and increase budgeting for funding the MSMEs sector which he described as the engine room of economy.

Oladehinde said: “These are the birds that laid the golden eggs and so we should look at the investment in this engine of economic growth as the only way revive economically. “The is the only way we create jobs for our youth and the only way that we can sustain our democracy.”

Oladehinde said there was the need for Nigeria to align its trade policy to its strategic partners, especially its AGOA partners. He said this would allow Nigeria to optimize the benefit of AGOA. He said: “This is access to one of the most lucrative markets in the world.

“In the US, you can bring in 6,500 products duty free. “The demand is huge. This is one market in the world that everybody craves for. “Everybody wants access to the US market. And if Nigeria is able to send our products to these markets, that would allow us to create jobs, grow our businesses and pay taxes, it allows our airports to be very busy.

“It will allow us to reduce traditional cost in terms of cost to the citizens, and not only that it would also incentivise direct foreign from the US into Nigeria.”

Oladehinde said if Nigeria could key in to the scheme as it ought to, it would have impact on the nation’s socio-economic development and fast track its agenda on industrialisation He said the creation of 20 million jobs annually in Africa would keep the youth engaged.

Oladehide also added that it would make them to avoid illegal and painful migration that the continent witnessed in the last seven years to 10 years.


Related News

How Nigerian exporters can benefit from AGOA

How Nigerian exporters can benefit from AGOA

Nigerian exporters in the non oil sector can actually take Nigeria out of the wood and earn billions of dollars exporting goods to America through the full utilisation of African Growth and Opportunity Act (AGOA). Though AGOA programme has been on for the past 16 years, Nigeria has never taken full advantage of the potentials due to its over reliance on oil while other...

09 October, 2017
'Nigerian exporters not maximizing AGOA opportunities'

'Nigerian exporters not maximizing AGOA opportunities'

The Nigerian-American Chamber of Commerce (NACC) has said that Nigerian exporters are not taking full advantage of opportunities offered by the African Growth and Opportunity Act (AGOA). President of NACC, Chief Olabintan Famutimi, disclosed this at a Roundtable discussion while playing host to Deputy Assistant Secretary, US Commercial Service for Middle East and Africa,...

25 August, 2017
Nigeria: $100b non-oil export target - stakeholders push for AGOA

Nigeria: $100b non-oil export target - stakeholders push for AGOA

The foreign commercial service of the United States (U.S.) diplomatic mission to Nigeria has been living up to its mission of promoting the expansion of the U.S trade and investment in Nigeria. Its team of trade and commercial specialists has consistently maintained the importance of the African Growth and Opportunities Act (AGOA) as a powerful tool for Nigeria to drive...

17 August, 2017
Nigeria: NACC becomes recognised AGOA Trade Resource Centre

Nigeria: NACC becomes recognised AGOA Trade Resource Centre

The Nigerian-American Chamber of Commerce (NACC), said it has attains AGOA Trade Resource Centre status, particularly for the organised private sector in Nigeria. The chamber, which has the mandate of promoting trade and commerce between Nigeria and America, said it also signed pacts with the USAID/West Africa Trade and Investment Hub (WATIH) in order to boost Nigeria’s...

20 June, 2017
Empowering the Nigerian textile industry

Empowering the Nigerian textile industry

Nigeria’s textile and apparel industry covers the entire clothing value chain, and has a strong potential for growth due to availability of cotton and the country’s large market-size represented by over 170 million inhabitants, who provide a natural market for textiles and apparels. Moreover, there is also the scope to export Nigerian textiles and apparels to other...

19 May, 2017