The United States has announced a new direction in its engagement with Nigeria — moving from decades of aid-driven partnerships to a more commercially focused, private sector-led model of investment.
This was disclosed by the United States Ambassador to Nigeria, Richard Mills Jr., during a high-profile Fireside Chat at the Lagos Business School on Thursday. The event, themed “Toward a Robust US-Nigeria Commercial and Investment Partnership”, brought together policymakers, business leaders, and development experts to explore evolving economic ties between the two nations.
According to Mills, the US has historically invested billions of dollars in Nigeria’s health, education, and agricultural sectors. These investments, he noted, have saved lives and created economic opportunities. However, he emphasized that the time has come to build on these gains by embracing a new model that promotes economic self-sufficiency and two-way trade.
“We are making a shift from aid to trade,” Mills stated. “We want to engage African nations not as aid recipients, but as capable commercial partners. Private sector investment, not development assistance, is what truly drives long-term economic growth.”
The Ambassador underscored that Nigeria — the United States’ second-largest trading partner in Africa, with a bilateral trade volume reaching $13 billion by the end of 2024 — stands at a strategic advantage in this new phase of economic diplomacy.
To bolster this shift, Mills revealed that the US Department of Commerce and Nigeria’s Ministry of Industry, Trade and Investment signed a Commercial and Investment Partnership (CIP) agreement last year. The five-year memorandum of understanding focuses on three critical pillars: agriculture, the digital economy, and infrastructure.
“Only five African countries, including Nigeria, have been selected for the CIP. That’s a testament to Nigeria’s potential and the priority we place on this relationship,” Mills added, announcing that formal partnership discussions would commence later this month.
The Ambassador praised recent macroeconomic reforms introduced by the Nigerian government, which he said have started to improve investor confidence and create a more favorable business environment for American firms.
“I want to commend the current leadership in Nigeria. They listen — at both the federal and state levels — and that willingness to address concerns raised by US businesses is invaluable,” he said.
Mills admitted that the reforms, including tax restructuring and subsidy removals, have been painful for ordinary Nigerians but insisted they were essential for long-term growth.
“One US company told me they had to pay 67 different taxes — including a tax on wheelbarrows. That’s unsustainable. But the new tax reform bill offers hope,” he added.
Despite the positive strides, the Ambassador did not shy away from pointing out lingering challenges. Chief among them is Nigeria’s unreliable electricity supply, which he said continues to deter US companies, especially in the tech sector, from scaling operations.
“Power distribution and transmission capacity is a serious blockage. US tech firms are particularly interested in Nigeria because of its incredible talent, but energy instability makes expansion difficult,” Mills noted.
To mitigate this challenge, the US is deepening its support through the Power Africa initiative and other energy-focused programs. These efforts aim to scale up smaller, off-grid solutions that bypass the inefficiencies of the national grid.
This policy pivot is not limited to Nigeria. Mills echoed sentiments from US Assistant Secretary of State for African Affairs, Molly Phee, and Ambassador Judd Devermont, who have both championed a future where African countries are viewed as equal commercial partners rather than perpetual aid recipients.
It aligns with broader goals under the Prosper Africa initiative, which seeks to double two-way trade and investment between the US and African countries. The renewed approach also complements recent calls within African policy circles for stronger trade alliances rather than dependency-based relationships.
This development comes at a time when global powers such as China and Russia are also expanding their economic footprints in Africa, often through massive infrastructure financing and resource-for-investment deals. The US’s trade-first approach could be seen as a strategic counterbalance to these influences, rooted in sustainable, market-driven development.
As discussions officially kick off this month under the CIP agreement, stakeholders across Nigeria’s private and public sectors are expected to begin co-creating frameworks that will facilitate tangible outcomes in investment, trade, and job creation.
If successful, this model could redefine US-Nigeria relations and serve as a blueprint for future partnerships across the continent — one where mutual economic prosperity, not dependency, becomes the driving force.