What Nigeria Will Gain From CEPA – Oduwole
By Naija Enquirer Staff
Nigeria and the United Arab Emirates have signed a Comprehensive Economic Partnership Agreement (CEPA) that is expected to significantly transform economic relations between both countries and unlock new opportunities for Nigerian businesses, professionals and workers.
Minister of Industry, Trade and Investment and Nigeria’s Chief Negotiator for the agreement, Dr Jumoke Oduwole, said the CEPA prioritises expanded market access for Nigerian goods and services, facilitates quality investment inflows and supports Nigeria’s economic diversification agenda under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Expanded Market Access for Nigerian Exporters
Under the agreement, the UAE will eliminate tariffs on more than 7,000 products from Nigeria. This means that Nigerian agricultural and industrial products such as fish and seafood, oil seeds, cereals, cotton, pharmaceuticals and chemicals will enter the UAE market duty-free with immediate effect.
Over the next three to five years, tariffs on Nigerian exports including machinery, vehicles, electrical equipment, apparel and furniture will also be phased out, providing Nigerian manufacturers with competitive access to one of the world’s fastest-growing trading hubs.
The agreement further allows Nigerian businesses to establish corporate entities, branches and subsidiaries in the UAE. Business visitors from Nigeria can stay in the UAE for up to 90 days within a year to explore trade and investment opportunities, while managers, executives and specialists can relocate through intra-corporate transfers for renewable three-year periods.
Boosting Nigeria’s Investment Climate
According to Oduwole, the CEPA addresses long-standing barriers to foreign direct investment by providing clarity and protection for UAE investors seeking opportunities in Nigeria.
She said the agreement would support Nigeria’s industrialisation agenda, improve transport and logistics infrastructure, and contribute to the creation of quality jobs for Nigeria’s growing youth population.
Nigeria’s Commitments Under the Agreement
On trade in goods, Nigeria will eliminate tariffs on about 6,000 products, with tariffs on roughly 60 per cent of these items removed immediately and the remainder phased out over five years.
The minister explained that the affected imports are largely industrial inputs, capital goods and machinery that will enhance Nigeria’s productive capacity, while the country’s Import Prohibition List remains unchanged.
In services trade, Nigeria made commitments across 99 specific services in 10 sectors, including business services, communications, transport, financial services, construction, distribution, health, environmental services, recreation and tourism.
A Strategic Tool for Economic Transformation
Oduwole described the CEPA as a strategic instrument for economic transformation, noting that improved market access for value-added and industrial goods would encourage Nigerian manufacturers to scale up production for export.
The agreement also positions Nigeria as a gateway for international investors seeking access to the African Continental Free Trade Area (AfCFTA) market of over 1.4 billion people.
Nigeria has already recorded increased participation from UAE institutional investors, including First Abu Dhabi Bank, particularly in infrastructure financing. This includes support for major projects such as the Lagos–Calabar Coastal Road.
Other areas expected to benefit from accelerated investment flows include agriculture, real estate, digital banking, retail and infrastructure financing.
Implementation and Private Sector Engagement
The Federal Ministry of Industry, Trade and Investment, working with agencies such as the Nigeria Customs Service, Nigerian Export Promotion Council, Nigerian Investment Promotion Commission and the Standards Organisation of Nigeria, will drive swift implementation of the agreement.
Oduwole commended the Nigerian negotiation team and partner institutions for their roles in securing the agreement, as well as the UAE negotiation team led by Dr Thani bin Ahmed Al Zeyoudi.
She urged Nigerian private sector operators to take advantage of the expanded market access and investor protections secured under the CEPA.
“Nigeria is open for business, and Nigerian businesses now have open access to the UAE, the Middle East and the rest of the world,” she said.
