Nigeria and the United Arab Emirates (UAE) have formally signed a Comprehensive Economic Partnership Agreement (CEPA) that will progressively eliminate tariffs on a wide range of goods and services, marking a major milestone in economic cooperation between Africa’s largest economy and the Gulf state.
The agreement, signed in early 2026 and reported by Nairametrics, is designed to unlock new opportunities for exporters, investors and service providers on both sides, while diversifying trade ties beyond traditional energy-centric links. Under the CEPA framework, Nigeria and the UAE have agreed to gradually waive import duties on qualifying products and liberalise market access for key service sectors, including finance, logistics, professional services, digital trade and tourism.
The deal reflects deepening engagement between Abuja and Abu Dhabi at a time when both economies are seeking to broaden their trading partnerships. Nigeria, Africa’s largest consumer market, stands to benefit from increased UAE investment in infrastructure, manufacturing and technology, while Emirati firms gain preferential access to a population of more than 200 million and a dynamic West African regional market.
Officials from both countries described the CEPA as a pragmatic step toward reducing barriers that have historically hindered bilateral trade, which has grown substantially in recent years but remained constrained by tariffs and non-tariff obstacles. Nigeria’s exports to the UAE are expected to expand beyond oil and gas to include agricultural products, processed foods, textiles and light manufactured goods. Conversely, the UAE will be able to export competitively priced industrial inputs, capital equipment and specialised services to Nigerian markets with greater ease.
Trade analysts say the tariff-free provisions could stimulate job creation and export diversification in Nigeria by making local products more competitive abroad. For the UAE, improved access to West Africa’s large and youthful market aligns with its long-term strategy to become a global trading and logistics hub.
The CEPA also includes provisions aimed at enhancing cooperation on customs facilitation, technical standards harmonisation, intellectual property protection and digital trade frameworks. Capacity building and support for small and medium-sized enterprises (SMEs) are further elements intended to ensure that the benefits of the agreement extend broadly across both economies.
The pact is set to be implemented in phases, with tariff reductions rolled out over several years to allow domestic industries time to adjust and capitalise on new export opportunities. Stakeholders on both sides have welcomed the agreement, although some Nigerian industry groups have urged careful monitoring to ensure that local producers are protected and supported during the transition.
Market watchers note that CEPA comes at a time when global supply chains are being reconfigured and regional trade agreements are gaining prominence as tools for economic resilience. For Nigeria, the pact with the UAE reinforces broader efforts to deepen trade linkages beyond traditional partners in Europe and the US, while attracting foreign direct investment into strategic sectors such as logistics, technology, energy and agriculture.
