Surge in agricultural exports and new financing tools signal shift toward long-term “trade over aid” partnership

By ifeoma Onyekachi

The United States has reaffirmed its push to expand agricultural trade with Nigeria, as economic ties between both countries gather pace and shift toward a more commercially driven partnership.

According to the U.S. Mission Nigeria, total bilateral trade in goods and services climbed to nearly $15 billion in 2025, marking a 14 per cent year-on-year increase. Officials say agriculture is emerging as a major pillar of that growth, reflecting renewed momentum in agribusiness collaboration.

Agricultural trade recorded one of the sharpest gains, rising to $764 million  an 84 per cent jump from 2024  underscoring Nigeria’s growing relevance in U.S. export markets and food supply chains.

At the centre of this expansion is the GSM-102 Export Credit Guarantee Programme, administered by the United States Department of Agriculture. The initiative provides credit guarantees that enable Nigerian banks to finance imports of U.S. agricultural commodities and inputs with reduced risk, effectively unlocking liquidity for agribusiness transactions.

To accelerate uptake, the U.S. Consulate General Lagos recently convened financial institutions, exporters and agribusiness stakeholders to explore access to the facility and scale cross-border trade opportunities.

U.S. Consul-General Rick Swart described Nigeria as a “critical partner” in agricultural trade, pointing to a broader policy pivot toward “trade over aid” — a strategy aimed at building durable, market-based economic relationships rather than dependence on development assistance.

Officials note that the reinstatement of Nigerian banks’ eligibility for the programme in late 2025 has already improved access to trade finance, lowering entry barriers for local players and strengthening bilateral supply chains.

Analysts say the renewed focus on structured financing and private-sector engagement could position agriculture as a cornerstone of U.S.–Nigeria economic cooperation, particularly as both countries look to diversify trade and enhance food security resilience.