Nigeria-UAE deal will force Nigerian businesses into global competition- Oduwole, Industry Minister
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, says the economic reforms of President Bola Ahmed Tinubu are beginning to yield sustainable results. She said the new trade agreements between Nigeria and the United Arab Emirates will significantly boost non-oil exports and investor confidence, adding that only a conducive business environment could have enabled the reforms. Oduwole spoke on Politics Today on Channels Television, in an interview monitored by David Lawani
What fundamentally drives the understanding between Nigeria and the UAE? What objectives do both countries share, and why do these agreements matter for trade?
Speaking first of all to Nigerian exporters under the Renewed Hope Agenda, the focus is on diversifying our economy and increasing performance in the non-oil sector. Over 7,000 product lines, ranging from oil-field services to pharmaceuticals, chemicals, and agricultural produce, will be allowed into the UAE market duty-free. We genuinely want Nigerian businesses to take advantage of this opportunity. We specifically chose the UAE, and Mr President deliberately chose the UAE as well. This week marks his fourth visit. Both sides, the UAE and Nigeria, have been very warm and receptive. These deals were negotiated to enable Nigerian exporters to have a hub that provides access to the rest of the world, particularly through the Gulf. The UAE is among the 10 largest trading nations globally. It is a gateway and a hub that connects East to West. It is a global hub not just because people enjoy visiting Dubai, but also because of its strength in transport and logistics, and the concentration of international business headquarters. It is one of the world’s major melting pots. Nigerian businesses will be able to open offices and subsidiaries in the UAE. Business owners can stay in the UAE for periods ranging from three to 90 days, or up to 12 months. This will help Nigerian businesses grow in competitive environments. The UAE invests heavily in real estate and tourism, and these are areas where Nigeria will continue to deepen its engagement. Nigeria will expand exports of its products into the UAE and onward to the rest of the world. That is the essence of trade and market access.
Why is this agreement also critically important beyond trade?
The President has repeatedly stated that Nigeria is open for investment. But what does that truly mean? It means creating an enabling environment, one that offers protection and certainty for businesses to survive and grow. It requires a framework that gives investors’ confidence. Both the UAE and Nigerian governments have delivered such a framework to enable large-scale investments, including Nigerians investing in their own country. We are targeting investments in infrastructure and in sectors where Nigeria has gaps. UAE capital will flow into these areas, and while profits will be made, the greater value lies in positioning Nigeria as a hub. Nigeria will serve as a base for accessing the rest of the world and Africa. Investment in Nigeria will support exports from Nigeria to global markets. From the UAE, Nigeria will also import machinery and critical inputs needed for the coastline industrialisation agenda. These fall within the 6,000-plus import lines that will be opened. The prohibition list remains intact. Tariff work is ongoing with the Ministry of Finance, Industry, Trade, and Investment. This is a collaborative effort aimed not only at the UAE agreement but also at developing a tariff schedule that will drive progress in line with the Renewed Hope Agenda.
How will Nigeria ensure that domestic industries and local investments are not negatively affected?
No one succeeds alone by applauding themselves. The President has made it clear that the Nigerian economy needs capital. However, domestic investors are prioritised; Nigeria comes first. In practical terms, no UAE investor can enter the Nigerian market independently; they must work with local partners. Take the Lagos–Calabar Coastal Highway as an example. It is the product of deliberate engagement, hard work, and investor confidence-building. Nigeria needs infrastructure, and there is no point pretending otherwise. We have prioritised Nigerian investors and ensured that imports are aligned with our industrialisation agenda. We recently released a National Industrial Policy that supports industrialisation and export facilitation. We are revamping our free zones and repositioning the economy. Over the past two years, the President has engaged globally, visiting Brazil, India, and many other countries. We have hosted global leaders, including the Vice President of Colombia. The world is paying close attention. Last year was primarily a reflection point. Now, we have moved beyond reflection. The reforms implemented by this administration are yielding results. The UAE negotiations were tough and among the most comprehensive we have undertaken. These agreements will deliver tangible development and capital inflows into the Nigerian economy. This is not an agreement to be signed and forgotten. It contains 22 chapters, including dispute settlement mechanisms and structured engagement platforms. Even on the signing day, my counterpart, Danny, and I discussed sectoral priorities. I have already announced that the next engagement will be held in Ethiopia on February 2. A lot is happening, and it is exciting. We are also ensuring that Nigerian businesses and investors take full advantage of this opportunity. This agreement presents a clear pathway to capitalise on our investment agenda.
How many Nigerian companies currently have the capacity to export at this level, and have they been identified?
We held our first-ever Domestic Investment Forum in August last year. Since then, we have worked extensively with medium-sized enterprises. Our track record on ease of doing business continues to improve. We are collaborating with the Nigeria Customs Service, and the National Single Window Project will go live in a few months. Technical teams are actively working on the Nigeria Single Window infrastructure. Several reforms have been implemented, including the establishment of special economic zones and improvements to the tax architecture. These reforms are not isolated; they are interconnected and designed to create an enabling environment. Export facilitation is a primary focus. We are currently running programs with sub-national and local governments, visiting each local government area to identify their competitive export advantages. Nigeria has firmly embraced the African Continental Free Trade Area (AfCFTA) and has increased its exports to Africa. The UAE is also seeking a base in Africa. Nigerian businesses will export not only to Africa but to the rest of the world through the Middle East hub. Nigerian products and innovation should never be underestimated. The role of government is to provide an enabling framework to ensure the agreement delivers real value. This agreement is not one-sided; it was negotiated to be a win-win. I am pleased that the inter-ministerial team delivered an outcome that benefits the Nigerian economy.
Realistically, how many jobs can this deal generate? Can the average Nigerian farmer or entrepreneur begin exporting to the UAE immediately under this framework?
Some provisions take effect immediately, while others will be implemented over three to five years. Consider the Lagos–Calabar Coastal Highway alone, how many jobs has it already generated? The opening of the financial services sector to the UAE will also attract foreign direct investment. Not every business will be export-ready immediately. That is why we are rolling out programs across all local government councils. We do not expect nano businesses to face the full rigours of international competition. This is where clusters and cooperatives come in. Government agencies such as the Nigerian Export Promotion Council, NEXIM, BOI, and SMEDAN are actively training, coaching, and supporting exporters. This is not theoretical. Last year, we opened an air-cargo corridor in partnership with Uganda. Thirteen Eastern and Southern African countries have since expressed interest in Nigerian products, snacks, zobo, plantain chips, apparel, fashion, and more. The demand is real. The African market is vibrant and hungry. We are facilitating export training and improving standards nationwide to enhance the value, competitiveness, and trade-readiness of Nigerian businesses.
