Nigeria’s economic potential is constrained by many structural issues, including inadequate infrastructure, tariff and non-tariff barriers to trade, obstacles to investment, lack of confidence in currency valuation, and limited foreign exchange capacity.
Sustained broad-based economic growth and poverty reduction are critical to its economic stability. USAID supports the Government's poverty alleviation efforts to improve agricultural productivity and expand jobs in rural areas. It also works to facilitate partnerships between private sector players with a focus on increasing trade, improving market access, increasing the country's energy supply and expanding access to clean water. U.S. assistance also focuses on expanding access to commercial financial services, including microfinance and credit guarantees.
Trade and Regulatory Reform
We support customs regulation and policy reform to encourage internal and external trade, encouraging the use of U.S. African Growth and Opportunity Act incentives for trade with the United States, and developing private sector capacity to meet international trade and export standards.
We work closely with the Government of Nigeria to implement activities that promote increased trade. These activities include assisting the National Customs Service for customs reform and modernization, reducing congestion at the Lagos seaport and increasing transport flows along the Lagos-Kano Jibiya Transport Corridor; and building trade capacity at the Ministry of Commerce and Industry. At the same time, we support private enterprises to stimulate exports through training and capacity building. This includes topics such as access to finance, export competitiveness, and linkage to international markets and partners.
Energy
Nigeria’s economic growth is also constrained by insufficient electricity generation capacity, which results in a lack of a reliable and affordable supply of power. At the same time, Nigeria flares considerable amounts of associated gas, a by-product of offshore crude oil extraction. Flaring generates significant greenhouse gas emissions and wastes a considerable amount of energy. To reduce gas flaring and increase generation of clean energy generally through greater private sector participation, we support the Government of Nigeria’s efforts to better manage the sector.
USAID