The African Growth and Opportunity Act (AGOA) and Poverty Reduction in Nigeria (2000-2015) an Appraisal

Okiete Solomon, N. J Nna


The paper analyzes the contributions of the African Growth and Opportunity Act (AGOA), to poverty reduction in Nigeria between 2000 and 2015. According to the proponents of the U.S. trade policy, it is expected to promote prosperity in the beneficiary countries. But our findings have shown that AGOA failed in reducing poverty in Nigeria, as poverty rates in the post-AGOA years are higher than in the pre-AGOA years. This is because Nigeria’s export basket to the United States is still dominated by crude oil, and the oil sectorhas limited job-creation capacity, which is a necessary prerequisite for poverty reduction. The non-oil sector which has the capacity to create jobs due to its labor-intensive nature has not shown any significant growth. The paper identifies the very high standard of the U.S market and the inability of Nigeria’s firms to meet that standard as part of the constraint. And suggests amongst other things that rather than depend on the developed countries for her economic salvation, Nigeria should develop its own home grown development model.



Economic, Development, Growth, Opportunity, Act, Poverty, Reduction.

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