A new U.S.-Nigeria trade agreement may offer a lifeline to the country’s startup ecosystem amid a global funding slowdown. Signed in July 2024, the U.S.-Nigeria Commercial and Investment Partnership (CIP) aims to remove regulatory barriers, promote private investment, and open access to American venture capital, critical support for Nigeria’s tech sector.
“The CIP process puts government and business in the same room to remove obstacles to trade,” said U.S. Ambassador to Nigeria Richard M. Mills during a fireside chat at Lagos Business School on Thursday. “I firmly believe that working together to advance our shared economic interests will create jobs, boost innovation, and unlock new opportunities on both sides of the Atlantic.”
At the heart of the five-year agreement is a renewed commitment to deepen access to U.S. capital markets, valued at over $120 trillion, and expand the already significant flow of venture funding to Nigerian startups. About 60% of Nigerian startups are incorporated in the U.S. In 2024, Nigerian startups raised $410 million in funding, a 17% increase from the $398.2 million recorded in 2023, according to Africa: The Big Deal.
The slowdown reflects global market uncertainty and local pain points—regulatory instability, currency volatility, and high operating costs. The CIP, formalised by Nigeria’s Minister of Industry, Trade, and Investment Doris Uzoka-Anite and U.S. Secretary of Commerce Gina Raimondo at the 2024 AGOA Forum in Washington, D.C., is designed to reverse that trend and help position Nigeria as a viable launchpad for digital innovation.
Discussions to activate the partnership will begin in Abuja this July, according to Mills. The deal introduces sector-specific working groups focused on technology, agriculture, and infrastructure. These teams, composed of U.S. and Nigerian stakeholders, will identify non-tariff barriers, regulatory friction, and opportunities to streamline investment processes.
“The three working groups will take a hard look at each sector’s regulatory challenges,” said Mills. “Both governments will listen and learn from these private sector actors on what concrete steps can be taken.”
Equally important are programs like SelectUSA and “Networking with the USA,” which offer Nigerian startups access to U.S. accelerators, enterprise partners, and funding networks. These platforms are expected to enhance product scaling, global market access, and knowledge transfer.
This kind of synergy has already paid dividends. Startups like Flutterwave, Andela, and Esusu—all founded by Nigerians educated in the U.S.—are now global players. Mills cited these companies as examples of the deep people-to-people ties that underpin U.S.-Nigeria relations.
More than 20,000 Nigerian students currently study in the U.S.—the largest African student population and the seventh largest globally. Over 750,000 Nigerians live in the U.S., forming the largest African diaspora group. For startups, these connections translate into access to mentorship, cross-border talent, and invaluable soft infrastructure.
Yet, the evolving U.S. trade posture isn’t without complexity. While tech startups are generally insulated from direct trade tariffs, being service-based and not reliant on exports, the recent 14% tariffs imposed on Nigerian non-oil exports could indirectly affect the sector. A decline in foreign exchange earnings could weaken the naira further, inflating the cost of imported hardware, cloud services, and other critical inputs.
“There is still a sense among U.S. businesses that Nigeria is a risky place to do business,” Mills noted. “It behoves the Nigerian diaspora who are extremely successful to tell that story.”
Moreover, tariff-related uncertainty may prompt some U.S. investors to adopt a more cautious, wait-and-see approach. Mills clarified, however, that the intent behind U.S. trade measures is to promote reciprocity, not punishment.
“Tariffs are not designed to be punitive,” he said. “What is being hoped for is a response from trading partners to get tariffs back on an equal framework.”
For now, the tech ecosystem remains relatively shielded. However, the CIP’s long-term value lies in its structural focus: reducing red tape, encouraging infrastructure development, and enabling private-sector innovation.
Nigeria remains one of only five African countries with a CIP agreement, clear evidence that Washington sees it as a long-term partner in digital innovation. If implemented well, the agreement could leverage Nigeria’s youthful population, vibrant diaspora, and entrepreneurial drive.
“Nigeria is the world’s present and future,” Mills said. And with the CIP in motion, that future could be closer than it once seemed.
