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Reading: Nigeria/UAE investment pact
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Government Policies

Nigeria/UAE investment pact

Last updated: January 26, 2026 11:20 am
Published: 3 months ago
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As part of a new trading pact aimed at expanding market access for Nigerian products, businesses and professionals, the federal government and the United Arab Emirates (UAE) recently agreed to scrap tariffs on over 13,000 goods imported from both countries. This is a great boost to the private sector in Nigeria. The agreement signed during President Bola Tinubu’s state visit to the UAE was the outcome of intense negotiations. Under the agreement, Nigeria will waive tariffs on 6,243 products imported from the UAE, while the UAE will remove tariffs on 7,315 products imported from Nigeria. This is a win-win deal for both countries.

Under the agreement, Nigeria will immediately remove tariffs on 3,949 products, representing 63.3 per cent of the total, while phasing out tariffs on 2,294 goods over the next five years. On its part, the UAE will remove tariffs on 2,805 products, representing 38.3 per cent of the total, in addition to waiving tariffs on 1,468 products within the next three years, and on 3,042 products within five years. Also, between the next three and five years, tariffs on categories such as machinery, vehicles, electrical equipment, apparel and furniture are expected to end completely.

After the signing of the agreement in Abu Dhabi, the UAE capital by heads of government of both countries, Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said the deal was part of the Nigeria, UAE Comprehensive Economic Partnership Agreement (CEPA) that was signed on January 13, 2026. A major plank of CEPA is to deepen cooperation in renewable energy, infrastructure, logistics and digital trade, as well as strengthen cooperation in aviation, agriculture, and climate-smart infrastructure.

In furtherance of the tariff deal, Nigeria will next month co-host investment platform with UAE in Lagos to attract global investors and boost sustainable investment inflows. This will clear the path for duty-free entry of key agricultural seafood, and industrial goods into one of the world’s richest markets that UAE has become. Undoubtedly, this is a historic milestone in Nigeria-UAE relations. With the sweeping elimination of tariffs, Nigeria’s agricultural and industrial products such as fish, seafood, oil seeds, cereals, cotton, pharmaceuticals, chemicals, and more, will enter UAE market at zero-duty. This will mark a major step in Nigeria’s non-oil export drive and economic diversification agenda.

Beyond tariffs, Nigerian firms will henceforth establish branches, subsidiaries or corporate entities in the UAE. Business visitors are also expected to secure up to 90 days annually for trade scouting, while intra-corporate transferees — managers, business executives and specialists — can get renewable 3-year stay. However, import prohibition lists in certain areas remain. All the same, the deals are enablers for Nigerian manufacturers that are currently facing some strains due to unfavourable government policies such as foreign exchange, multiple taxes, among others.

It is heartwarming that the Ministry of Industry, Trade and Investment, has rolled out guidelines for the trade investment to begin through the Nigeria Customs Service (NCS) and other relevant agencies like the Nigerian Export Promotion Council(NEPC), the Nigerian Investment Promotion Commission(NIPC), and the Standards Organisation of Nigeria(SON). All of this could be a game-changer for the organised private sector in Nigeria. We urge the sector and other entrepreneur giants to seize the opportunity provided by these deals and move with confidence, into the UAE, one of the world’s commercial hubs. In the same way, Nigeria business operators should show the rest of the world that the country is open for business, and ready to play in one of the world’s biggest economy turfs.

The UAE is said to have taken the first step in the deal by playing a major part in the capital-intensive construction of the Lagos-Calabar Coastal highway through First Abu Dhabi Bank and Sky Capital. They are already aiding negotiations in digital banking, real estate, retail and infrastructure. The Tinubu government deserves commendation for normalising relations with UAE that was strained following the visa ban on Nigeria travelers after a prolonged dispute that started in late 2022. The visa ban was lifted in July 2024 after a lengthy negotiation between both countries. The resolution saw the resumption of flights by Emirates and Etihad airlines to Nigeria. Perhaps the tariff deals will cement the bilateral relations between the two countries.

We, therefore, urge Nigerian exporters to seize the opportunity provided by the waiver on tariffs and show the world business community that Nigeria can deliver quality products that meet international standards. Moreover, the agreement is expected to curb Nigeria’s foreign direct investment (FDI) hurdles, and enhance confidence among UAE potential investors. It will make them have clarity and unflinching confidence to invest in Nigeria’s productive sector. Ultimately, this will support the country’s industrialisation agenda, enhance transport and logistics connectivity and contribute to the creation of jobs for Nigerians. Both countries must show sincerity of purpose in implementing the tariff pact.

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