China-Africa tariff exemptions: Why is Nigeria excluded?

Nigeria is urging China to remove trade tariffs, following the recent exemption granted to 33 other African countries. The Nigerian government believes that such measures will enhance economic cooperation and boost trade, aligning with the nation's development objectives. Notably, Nigeria recently concluded a 7.6-billion-euro green hydrogen energy deal with China, signaling a shift towards clean energy from fossil fuels. Obiora Madu, the Director-General of the African Center for Supply Chain, shared insights on the implications of Nigeria's exclusion from the tariff exemptions. Madu emphasized the significance of Nigeria's request for tariff exemptions, highlighting the potential benefits for countries enjoying duty-free access to Chinese markets. The waiver could amplify exports, generate job opportunities, and stimulate SME growth. However, Madu cautioned that successful utilization of this trade privilege hinges on Nigeria's readiness to leverage its strengths and address critical challenges. Despite the positive prospects, concerns have been raised regarding the predominantly low-value raw materials under the exemption list. Critics argue that to maximize gains, African nations must promote value addition and export processed goods to China. Madu acknowledged the imperative of enhancing value capture, emphasizing the need for infrastructure development and competitiveness in the manufacturing sector. He underscored the complexities of Nigeria's export competitiveness, citing high commodity prices and logistical inefficiencies as persistent obstacles. Regarding the 7.6-billion-euro clean energy deal between Nigeria and China, Madu anticipated increased foreign investments in Nigeria's energy sector. While acknowledging the benefits of diversifying trade relations, he raised questions about the deal's impact on Nigeria's oil-dependent economy. The evolving partnership between both nations, marked by growing trade volumes, underscores the potential for deeper economic collaboration. Geopolitical dynamics also influence Nigeria's trade relationships, with contrasts emerging between ties with China and the United States. Madu noted a more amicable trade atmosphere with China, contrasting the Trump administration's stance towards Africa. As concerns mount over the potential expiration of the African Growth and Opportunity Act (AGOA), Nigeria seeks to strengthen partnerships with China amid uncertainties in the global trade landscape. In conclusion, Nigeria's push for tariff exemptions from China reflects strategic efforts to enhance trade ties, diversify economic partnerships, and navigate evolving geopolitical currents. The nation's quest for competitiveness and value addition underscores the imperative of addressing infrastructural gaps and maximizing trade opportunities. As Nigeria steers towards clean energy collaborations and navigates shifting global trade dynamics, strategic alliances with key partners such as China are poised to shape the country's economic trajectory.