Nigeria and the United Arab Emirates (UAE) have signed a Comprehensive Economic Partnership Agreement (CEPA), marking a historic milestone in Nigeria’s trade relations.
The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, in a statement posted on his X handle on Tuesday, said the agreement is expected to transform economic ties between the two nations, delivering tangible benefits for Nigerian businesses, professionals, and workers.
“This agreement is the product of focused and determined negotiations led by the Federal Ministry of Industry, Trade and Investment under the direction of the Honourable Minister and Chief Negotiator for Nigeria, Jumoke Oduwole MFR.
“It prioritises market access for Nigerian goods and services, facilitates quality investment inflows, and advances our national economic diversification under the Renewed Hope Agenda of President Bola Ahmed Tinubu GCFR,” the statement said.
Benefits for Nigeria
For Nigerian exporters, according to the statement, the UAE will eliminate tariffs on over 7,000 products.
“Immediately, our agricultural and industrial products – fish and seafood, oil seeds, cereals, cotton, pharmaceuticals, chemicals and more- will enter the UAE market duty-free.
“Over the next three to five years, the UAE will eliminate tariffs on Nigerian machinery, vehicles, electrical equipment, apparel, and furniture. Nigerian industrial exports now have a clear and competitive pathway into one of the world’s most dynamic trading hubs.”
In addition, it said Nigerian businesses can establish operations in the UAE through new corporate entities, branches, and subsidiaries.
“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,” it said.
For Nigeria’s investment climate, this agreement, according to the statement, addresses longstanding impediments to foreign direct investment.
It explained that UAE investors now have clarity and confidence to invest in Nigeria’s productive sectors.
“This will support Nigeria’s industrialisation agenda, enhance transport and logistics connectivity, and contribute to the creation of quality jobs for our youthful population.
“With significant market access secured for value-added and industrial goods, this agreement incentivises Nigerian manufacturers to scale production for export.”
It added that 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.
“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 the Economic Community of West African States (ECOWAS),” the statement said.
