Nigeria, UAE seal sweeping trade deal scrapping tariffs on thousands of goods

Nigeria has signed a comprehensive trade agreement with the United Arab Emirates that will eliminate tariffs on thousands of products, marking one of the country’s most ambitious trade liberalisation moves in recent years.

The Nigeria–UAE Comprehensive Economic Partnership Agreement was signed in Abu Dhabi by President Bola Tinubu and UAE President Mohamed bin Zayed Al Nahyan on the sidelines of Abu Dhabi Sustainability Week. Officials say the deal is designed to expand export opportunities, attract new investment, and strengthen Nigeria’s position as a gateway for trade into Africa.

Under the agreement, Nigerian exporters will gain duty-free access to one of the world’s busiest trading and logistics hubs, while UAE investors will benefit from clearer rules and protections when investing in Nigeria’s productive sectors. The government says the pact aligns with Nigeria’s broader push to diversify its economy away from oil and accelerate industrial growth.

President Tinubu described the agreement as a practical step with direct economic impact, noting that it supports Nigeria’s industrialisation agenda while reinforcing long-term national interests. He said the removal of tariffs would improve the competitiveness of Nigerian goods and create new opportunities for manufacturers and exporters.

Duty-free access unlocks export opportunities

At the centre of the agreement is the removal of tariffs on more than 7,000 Nigerian products entering the UAE market. According to Nigeria’s Minister of Industry, Trade and Investment, Jumoke Oduwole, the products covered include agricultural and industrial goods such as fish and seafood, oil seeds, cereals, cotton, pharmaceuticals, and chemicals.

Over the next three to five years, tariff elimination will expand further to include machinery, vehicles, electrical equipment, apparel, and furniture. Officials say this phased approach gives Nigerian producers time to scale capacity while positioning them competitively in the UAE and re-export markets.

Beyond goods, the agreement allows Nigerian companies to establish a commercial presence in the UAE through new corporate entities, branches, and subsidiaries. Business visitors from Nigeria will also be permitted to stay in the UAE for up to 90 days annually to explore trade and investment opportunities, while managers and specialists may relocate under renewable three-year arrangements.

Oduwole said the agreement provides Nigerian exporters with a clearer and more predictable pathway into global markets, reducing uncertainty and lowering costs for firms seeking to expand internationally.

Investment rules aim to boost industrial growth

The deal also places strong emphasis on investment facilitation, addressing long-standing concerns that have limited foreign direct investment into Nigeria’s manufacturing and industrial sectors. UAE investors will now operate under clearer regulatory frameworks, with protections designed to support long-term capital commitments.

According to the government, these measures are expected to support industrial expansion, improve logistics and infrastructure, and create jobs for Nigeria’s rapidly growing workforce. Priority sectors include manufacturing, transportation, financial services, construction, healthcare, and tourism.

Nigeria has made reciprocal commitments under the agreement, agreeing to eliminate tariffs on around 6,000 imported products. About 60 percent of these tariffs will be removed immediately, with the remainder phased out over five years. The imports largely consist of industrial inputs, capital goods, and machinery intended to strengthen domestic productive capacity, while Nigeria’s import prohibition list will remain in place.

In services, Nigeria has opened 99 specific service categories across 10 sectors, signaling a broader opening of the economy to cross-border trade and investment.

The government has pledged swift implementation of the agreement, with agencies such as the Nigeria Customs Service, the Nigerian Export Promotion Council, and the Nigerian Investment Promotion Commission tasked with ensuring businesses can quickly take advantage of the new framework.

Officials say the deal was negotiated with the private sector in mind and are urging Nigerian businesses to seize the opportunity to expand into the UAE and beyond as the country deepens its integration into global trade networks.