The recently signed Comprehensive Economic Partnership Agreement between the United Arab Emirates and Nigeria marks the beginning of a new phase in the economic relations between the two nations. This initiative aligns with the UAE’s vision to strengthen global economic partnerships and unlock avenues for mutually beneficial economic growth.
The agreement has garnered significant attention from the business communities in both the UAE and Nigeria, especially with expectations of substantial economic opportunities it will create for companies across various sectors, potentially leading to massive investments in the economies of both countries.
A key objective of the agreement is to lower tariffs and eliminate trade barriers, which will enhance trade and investment flows, while also creating new opportunities in vital sectors of mutual interest, including technology, agriculture, precious metals, and energy.
Furthermore, the agreement aims to elevate collaboration between the private sectors of both nations, enhance supply chains, and empower small and medium enterprises to broaden their market reach internationally.
This agreement initiates a long-term partnership between the two countries. In 2024, the value of non-oil bilateral trade reached $4.3 billion, reflecting a significant annual increase of 55.3% compared to 2023, and the growth trend continued into 2025 with recorded figures of $3.1 billion during the first nine months.
As a cornerstone of the UAE’s ambitious foreign trade agenda, the Comprehensive Economic Partnership Agreements Program intends to boost the value of non-oil foreign trade to 4 trillion dirhams (approximately $1.1 trillion) by 2031.
In 2024, the program contributed to a record non-oil trade figure of $810 billion, marking an annual growth of 14%. With 32 agreements forged and 14 having entered into force, the program exemplifies the UAE’s commitment to embracing open rule-based international trade, fostering economic growth and diversification, and providing new opportunities for companies in high-growth markets globally.
Tariff Exemptions
Nigeria has emphasized the significance of the Comprehensive Economic Partnership Agreement signed with the UAE, aimed at establishing a new era of thriving trade and investment relations between the two nations in pursuit of sustainable development.
Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, reiterated that the agreement will grant Nigerian exporters duty-free access to over 7,000 product lines to the Middle Eastern trade center.
In an interview with a television channel, she highlighted the rewarding outcomes of the negotiations, noting, “Both sides are extremely pleased with what we have achieved. This deal is tailored for Nigerian exporters to diversify our economy and promote non-oil exports.”
According to the minister, over 7,000 product lines, ranging from seeds and oils to pharmaceuticals and chemicals, will enter the UAE market duty-free.
She added, “We genuinely want Nigerian companies to benefit from this, and we specifically chose the UAE.” The recent visit by President Bola Ahmed Tinubu signifies the fourth official visit to the UAE, showcasing ongoing efforts to strengthen ties.
She explained that the deal is designed to enable Nigerian exporters to use the Gulf as a launching pad into the global market. The UAE is regarded as one of the largest trading nations worldwide, serving as a pivotal gateway connecting markets from east to west, stating, “This is a central hub, an entry point linking the global economy.”
She also highlighted the UAE’s substantial investments in transportation, logistics, and global commercial headquarters, emphasizing that Nigerian companies can now establish offices and branches in the UAE. It was revealed that Nigerian businesspeople will be permitted to remain in the UAE for up to 90 days within a 12-month period.
Oduwole indicated that Nigeria plans to deepen access in competitive sectors such as hospitality, real estate, and tourism while expanding Nigerian product exports to the UAE and beyond to other global markets.
She stressed that the agreement is also vital for attracting foreign investment, stating, “You need an enabling environment for business growth; this framework gives investors the confidence to come.”
According to her, the agreement will drive investment into key sectors prioritized by Nigeria, particularly infrastructure.
She noted that Nigeria will be importing machinery and industrial inputs from the UAE to support its industrial agenda, stating over 6,000 import lines have been opened.
She reported that tariff negotiations were conducted collaboratively with the ministries of finance, industry, trade, and investment.
She emphasized that the government’s role includes building the capacity of exporters through agencies such as the Nigerian Export Promotion Council, Nexim Bank, the Bank of Industry, and the Small and Medium Enterprises Development Agency.
Oduwole encouraged Nigerian companies to fully leverage the trade facilitation measures and export opportunities created by the agreement.
She highlighted that the deal aligns with Nigeria’s agenda for non-oil diversification and export-led growth, noting that special economic zones are being reconfigured exclusively for export-oriented production.
Significant Consumer Power
Nigeria stands as one of the fastest-growing countries globally in terms of population, with approximately 240 million residents, providing a massive consumer base that represents an attractive market for products and services both locally and internationally. This demographic size bolsters long-term domestic demand and offers substantial consumer power for local and global companies.
Nigeria boasts the largest economy in Africa based on GDP, competing closely with South Africa and Egypt. Figures can slightly vary based on the year of estimation and purchasing power parity; the International Monetary Fund ranks it as Africa’s top economy in 2025, heavily reliant on its oil sector and vast market.
For 2025, Nigeria’s GDP is estimated to range from around $285 billion (IMF nominal estimates) to $387 billion, with projections suggesting it may exceed $374 billion. Other estimates (adjusted for purchasing power) predict significantly higher figures approaching $2.59 trillion, supported by robust growth in the services sector and non-oil industries, with an expected annual growth rate of about 3.9%. These figures reflect an expansion in economic activities, particularly in services, agriculture, and the informal sector.
The Nigerian economy is projected to grow at a rate of 4.6% by the end of 2024, the fastest growth rate in nearly a decade, according to World Bank estimations. In the second quarter of 2025, growth registered at 4.23% compared to the same period in 2024, with strong expansions in industrial and service sectors. These figures highlight the economy’s ability to rebound following reforms and growth in various sectors.
Nigeria managed to reduce its inflation rate to around 14.45% by November 2025, compared to 33.18% a year prior, marking an important indicator of stability after years of high inflation.
Furthermore, foreign reserves have risen to approximately $45.5 billion, strengthening the country’s cash reserves and its ability to withstand external shocks. Such improvements reflect the impact of monetary reforms that have enhanced the country’s capacity to manage fiscal and monetary policies effectively.
Trade and Trade Balance
Nigeria recorded a positive trade surplus during 2025, driven by increased non-oil exports such as cocoa and sesame, with the surplus reaching around $8.42 billion in the first half of the year. The positive trend continued into the third quarter, indicating economic diversification, although oil and gas exports still comprise the largest share of total exports, with key trading partners being Europe and Asia.
Non-oil exports grew by approximately 24.6% in 2025, while gas exports surged by 48.3%. This evolution reflects Nigeria’s capacity to diversify and expand its trading activities despite challenges.
The services sector in Nigeria is crucial, accounting for more than half of the GDP, with prominent fields including trade, information and communications, real estate, and professional and financial services.
It experiences growth supported by the private sector, although challenges remain, such as the need for infrastructure improvements and enhancement of the business environment, with notable growth in banking and fintech sectors.
The industrial sector, led by oil and gas, showcased strong expansion and played a vital role in the growth during the second quarter of 2025, helping to enhance the economy’s capacity to create added value.
In the clean energy sector, Nigeria launched a $2 billion fund to support the transition to clean energy and sustainable projects, with a plan to attract $25 to $30 billion annually in climate financing. These sectors demonstrate the interest of foreign investors and the international community in Nigeria’s economic potential.
Regional Partner
According to the Ministry of Foreign Trade, the UAE is Nigeria’s largest export market among Arab nations, reflecting the interconnectedness between the local market and the African continent. These extensive relationships facilitate achieving the objectives of mutual agreements through the smooth flow of capital and investments into high-value sectors between both sides, particularly in fundamental sectors such as agriculture, technology, and infrastructure.
Nigeria has unique attributes that pave the way for substantial successes and opportunities for mutual economic benefits. Based on data from the International Monetary Fund, Nigeria is expected to maintain its position among the top three African economies by 2030.
The oil sector in Nigeria constitutes about 90% of its revenue, further enhancing collaborative opportunities with the UAE as one of the world’s leading oil producers.
Data from OPEC shows that Nigeria has maintained its lead as Africa’s largest oil producer, followed by Libya, Angola, and Algeria, witnessing improvements and annual growth in production volumes to reach 1.35 million barrels per day in recent years.
Nigeria also holds a prominent position in the global minerals market, particularly regarding strategic minerals, reinforcing its economic efforts towards diversification and creating other strong sources of national income beyond oil.
Nigeria ranks among the top five African countries producing two-thirds of the continent’s minerals, according to international agencies such as the U.S. Geological Survey, which has ranked Nigeria as the fifth-largest producer of rare minerals worldwide.
Specifically, Nigeria is the second-largest global producer of tantalum, holding an 18.7% share of global output. Further studies indicate that Nigeria possesses significant reserves of minerals like gold, iron, and uranium, awaiting development to create a broad market for investment opportunities to boost economic partnerships.
Nigerian Trade Minister
The UAE is one of the largest trading nations globally and a principal gateway connecting markets east and west.
We plan to import machinery and industrial inputs from the UAE to support our industrial agenda.
7000
Products exempt from tariffs following the signing of the partnership agreement.