Nigeria has secured duty-free access for more than 7,000 products into the United Arab Emirates, UAE, following the signing of a Comprehensive Economic Partnership Agreement (CEPA) between both countries.
This is a move expected to significantly boost exports and open new opportunities for Nigerian businesses and workers.
The agreement, described as a historic milestone in Nigeria’s trade relations, is the outcome of focused and determined negotiations led by the Federal Ministry of Industry, Trade and Investment, under the direction of the Minister and Nigeria’s Chief Negotiator, Dr Jumoke Oduwole
CEPA Deliverables
Speaking on the deliverables of the agreement, Nigeria’s Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said CEPA prioritises market access for Nigerian goods and services, facilitates quality investment inflows, and advances Nigerian economic diversification under the Renewed Hope Agenda of President Bola Ahmed Tinubu.
She also disclosed that over the next three to five years, the UAE will also remove tariffs on key Nigerian exports, including machinery, vehicles, electrical equipment, apparel and furniture.
In addition, Dr Oduwole noted that the agreement allows Nigerian businesses to freely establish operations in the UAE through new corporate entities, branches and subsidiaries, significantly expanding market access and investment opportunities.
“Immediately, our agricultural and industrial products – fish and seafood, oil seeds, cereals, cotton, pharmaceuticals, chemicals and more, will enter the UAE market duty-free.
“Nigerian industrial exports now have a clear and competitive pathway into one of the world’s most dynamic trading hubs.
“Nigerian business visitors can enter the UAE for up to 90 days in 12 months to explore trade and investment opportunities, while intra-corporate transferees, our managers, executives, and specialists, can relocate with their corporate entities for renewable three-year periods.” The Minister explained.
Dr. Oduwole emphasised that for Nigeria’s investment climate, the Agreement addresses longstanding impediments to foreign direct investment.
She noted that UAE investors now have clarity and confidence to invest in Nigeria’s productive sectors thereby providing support for Nigeria’s industrialisation agenda, enhance transport and logistics connectivity, and contribute to the creation of quality jobs for our youthful population.
Nigeria’s Commitments Under the Agreement
Speaking on Nigeria’s commitment in the newly signed agreement with the UAE, Dr Oduwole said for trade in goods, Nigeria will eliminate tariffs on around 6,000 products.
According to her, “tariffs on around 60% of these products will be eliminated immediately, with the remainder phased over five years”.
These imports are concentrated in industrial inputs, capital goods, and machinery that will strengthen Nigeria’s productive capacity. She affirmed that Nigeria’s Import Prohibition List remains in effect.
On trade in services the Minister said that Nigeria’s committment cover 99 specific services across 10 sectors, including business services, communication, transport, financial services, construction, distribution, health, environment, recreational/sporting, and tourism.
CEPA As Strategic Agreement for Diversified Economy
Oduwole said CEPA is a strategic instrument for economic transformation with significant market access secured for value-added and industrial goods.
“This Agreement incentivises Nigerian manufacturers to scale production for export. The CEPA also positions Nigeria as the gateway for international investors seeking access to the African Continental Free Trade Area and its 1.4 billion people.
Nigeria has already recorded unprecedented participation from UAE institutional investors, including First Abu Dhabi Bank, particularly in infrastructure financing. Notably, this includes support for the construction of the Lagos–Calabar Coastal Road, representing a strong vote of confidence in Nigeria’s macroeconomic trajectory and reform agenda. Sky Capital has been instrumental in supporting the CEPA agreement and in projecting Nigeria’s investor readiness. The signing of the Agreement signals acceleration of deals in agriculture, real estate, digital banking, retail and infrastructure financing.”
The Agreement is fully consistent with our obligations under the World Trade Organisation, the African Continental Free Trade Area, and ECOWAS.
Swift Implementation
- The Minister of Trade hinted that the Federal Ministry of Industry, Trade and Investment, working with key MDAs such as the Nigeria Customs Service (NCS), alongside FMITI agencies such as the Nigerian Export Promotion Council (NEPC), and the Nigerian Investment Promotion Commission (NIPC) and the Standards Organisation of Nigeria (SON) will ensure that Nigerian businesses, and the investors host in the country have the information, support, and facilitation they need to take swift and full advantage of the Agreement in line with President Bola Tinubu’s “Nigeria First” directive.